Working Papers
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Working Paper Series
Full Employment, Open Economy Macroeconomics, and Keynes’ General Theory: Does the Swan Diagram Suffice?
Feb 2016
This paper provides critical comments on the Peter Temin - David Vines promotion of the basic Swan Diagram as (1) a policy tool to encourage any individual debtor nation experiencing balance of payment deficits to reduce its exchange rate in order to expand exports and reduce imports and (2) the Swan Diagram as a simple model for understanding Keynes’s General Theory for an Open Economy.
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Working Paper Series
Household Borrowing and the Possibility of “Consumption- Driven, Profit-Led Growth”
Jan 2016
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.
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Working Paper Series
Understanding the Great Recession
Dec 2015
Some Fundamental Keynesian and Post-Keynesian Insights, with an Analysis of Possible Mechanisms to Achieve a Sustained Recovery
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Working Paper Series
A Theory of How and Why Central-Bank Culture Supports Predatory Risk-Taking at Megabanks
Dec 2015
This paper applies Schein’s model of organizational culture to financial firms and their prudential regulators.
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Working Paper Series
Veiled Repression: Mainstream Economics, Capital Theory, and the Distributions of Income and Wealth
Dec 2015
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.
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Working Paper Series
Learning, Expectations, and the Financial Instability Hypothesis
Nov 2015
This paper analyzes what assumptions on formation of expectations are consistent with Minsky’s Financial Instability Hypothesis (FIH) and its corollaries.
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Working Paper Series
The American Dual Economy: Race, Globalization, and the Politics of Exclusion
Nov 2015
I describe the American economy in the twenty-first century as a dual economy in the spirit of W. Arthur Lewis.
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Working Paper Series
The Greek “Rescue”: Where Did the Money Go?
Nov 2015
This paper analyses the financial assistance provided to Greece in the first two rescue packages granted by the Troika (European Union, European Central Bank and IMF).
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Working Paper Series
Inequality, Debt Servicing, and the Sustainability of Steady State Growth
Nov 2015
We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance.
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Working Paper Series
Debt Servicing, Aggregate Consumption, and Growth
Nov 2015
We develop a neo-Kaleckian growth model that emphasizes the importance of consumption behavior.
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Working Paper Series
Elasticity and Discipline in the Global Swap Network
Nov 2015
This paper sketches the outlines of the new international monetary system that has emerged in the aftermath of the global financial crisis.
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Working Paper Series
Did Quantitative Easing Increase Income Inequality?
Oct 2015
The impact of the post-meltdown Federal Reserve policy of ultra-low interest rates and Quantitative Easing (QE) on income and wealth inequality has become an important policy and political issue.
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Working Paper Series
Innovative Enterprise or Sweatshop Economics? In Search of Foundations of Economic Analysis
Oct 2015
By integrating the history of industrial development in Britain and the United States with the ideas of leading economic thinkers, this essay demonstrates the absurdity of perfect competition as the ideal of economic efficiency.
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Working Paper Series
When Credit Bites Back: Leverage, Business Cycles and Crises
Oct 2015
This paper studies the role of credit in the business cycle, with a focus on private credit overhang.
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Working Paper Series
The Cyclically Adjusted Budget: History and Exegesis of a Fateful Estimate
Oct 2015
This paper traces the evolution of the concept of the cyclically adjusted budget from the 1930s to the present.