Archive

Why the E-DSGE Framework Is Not Fit for Purpose and What to Do About It

Central banks strongly favored rentier incomes in their reaction functions

Our findings confirm the existence of a negative relationship between labor market slack and the wage share, and we find no tendency to return to a ‘normal’ unemployment rate associated with a stable wage share.

An alternative look at the “global savings glut”

The popular discontent and rise of ‘populist’ political parties is closely related to the failure of New Labor to navigate social democracy’s dilemma.

This paper argues that it is a mistake to dismiss secular demand stagnation as main cause of declining potential growth in the OECD.

Policy hype but vintage fiscal economics from Godley, Lerner, and Keynes

Everyone is waking up to the fact that estimates of what is possible in the economy are way off: this paper explains why

This paper provides a careful and synthetic overview of his contributions as well as a reconstruction of Pasinetti’s philosophical approach to economics as a science meant to serve humanity.

We first show that, with a Kaleckian structure that is consistent with Pasinetti (1962), the relationship between distribution and growth is more robust than conventional wisdom suggests. Next, we extend our model by incorporating borrowing and emulation effects into workers’ consumption behavior, under different assumptions about how debt is serviced.

Some Fundamental Keynesian and Post-Keynesian Insights, with an Analysis of Possible Mechanisms to Achieve a Sustained Recovery

The Cambridge UK vs USA capital theory debates of the 1960s showed that the workhorse mainstream growth model relies on unsustainable assumptions. Its standard interpretation is not consistent with the last four decades of data.

We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance.

We develop a neo-Kaleckian growth model that emphasizes the importance of consumption behavior.

This paper traces the evolution of the concept of the cyclically adjusted budget from the 1930s to the present.

US Military needs during the Cold War induced a mathematical modeling of rational allocation and control processes while simultaneously binding that rationality with computational reality. Modeling strategies to map the optimal to the operational ensued and eventually became a driving force in the development of macroeconomic dynamics.

We show how every stock-flow consistent model of the macroeconomy can be represented as a directed acyclic graph.

A growth model incorporating dynamics of capital per capita, atmospheric CO2 concentration, and labor and energy productivity is described.

This paper considers a puzzle in growth theory from a Keynesian perspective.

Central to John Maynard Keynes (1941) original Bretton Woods proposal was an international clearing union that would issue a new international currency by fiat called bancor. Among other functions, this international central bank would finance the stabilization of individual commodity prices through commodity buffer stocks.