Publications

1681 publications found

• Working Paper No. 782 December 12, 2013

  Feasible Estimation of Linear Models with N-fixed Effects

  Fernando Rios-Avila
  Abstract

  In this paper an alternative approach for the estimation of higher-order linear fixed-effects models is described. The strategy relies on the transformation of the data prior to calculating estimations of the model. While the approach is computationally intensive, the hardware requirements for the estimation process are minimal, allowing for the estimation of models with more […]

  Download Working Paper No. 782 PDF (533.88 KB)
• Working Paper No. 781 December 10, 2013

  A Stock-flow Approach to a General Theory of Pricing

  Philip Pilkington
  Abstract

  The paper seeks to lay out a stock-flow-based theoretical framework that provides a foundation for a general theory of pricing. Contemporary marginalist economics is usually based on the assumption that prices are set in line with the value placed on goods by consumers. It does not take into account expectations, or the fact that real […]

  Download Working Paper No. 781 PDF (852.71 KB)
• Policy Notes No. 10 December 03, 2013

  Η συνεχιζόμενη καταλληλότητα των κρατικών ομολόγων με την κάλυψη φόρων (tax-backed bonds) για την ευρωζώνη

  Philip Pilkington
  Abstract

  Σε ένα σημείωμα πολιτικής που δημοσιεύθηκε πέρυσι από το Levy Institute, ο Philip Pilkington και ο Warren Mosler υποστήριξαν ότι η κρίση χρέους στην ευρωζώνη θα μπορούσε να λυθεί από τις εθνικές κυβερνήσεις χωρίς τη βοήθεια της Ευρωπαϊκής Κεντρικής Τράπεζας (ΕΚΤ), αλλά και χωρίς έξοδο από τη νομισματική ένωση, μέσω της έκδοσης μιας προτεινόμενης χρηματοοικονομικής […]

  Download Σημείωμα Πολιτικής 2013/10 PDF (467.25 KB)
• Policy Notes No. 10 December 03, 2013

  The Continued Relevance of Tax-backed Bonds in a Post-OMT Eurozone

  Philip Pilkington
  Abstract

  In a policy note published last year by the Levy Institute, Philip Pilkington and Warren Mosler argued that the eurozone sovereign debt crisis could be solved by national governments without the assistance of the European Central Bank (ECB) and without their leaving the currency union, through the issuance of a proposed financial innovation called “tax-backed […]

  Download Policy Note 2013/10 PDF (234.30 KB)
• Working Paper No. 780 November 21, 2013

  Lost at Sea

  Jörg Bibow
  Abstract

  The euro crisis remains unresolved even as financial markets may seem calm for now. The current euro regime is inherently flawed, and recent reforms have failed to turn this dysfunctional regime into a viable one. Our investigation is informed by the “cartalist” critique of traditional “optimum currency area” theory (Goodhart 1998). Various proposals to rescue […]

  Download Working Paper No. 780 PDF (783.16 KB)
• Working Paper No. 779 November 15, 2013

  Hierarchy of Ideals in Market Interactions

  Aurélie Charles
  Abstract

  This paper argues that a hierarchy of ideals exists in market interactions that sets the benchmark on the norm of fairness associated with these interactions, thus affecting pricing decisions associated with market exchange. As norms emerge, an ideal determines the criteria of optimal behavior and serves as a basis for market exchange. Norms homogenize the […]

  Download Working Paper No. 779 PDF (330.24 KB)
• Working Paper No. 778 November 01, 2013

  Modern Money Theory 101

  L. Randall Wray
  Abstract

  One of the main contributions of Modern Money Theory (MMT) has been to explain why monetarily sovereign governments have a very flexible policy space that is unencumbered by hard financial constraints. Through a detailed analysis of the institutions and practices surrounding the fiscal and monetary operations of the treasury and central bank of many nations, […]

  Download Working Paper No. 778 PDF (486.21 KB)
• Strategic Analysis October 16, 2013

  Rescuing the Recovery: Prospects and Policies for the United States

  Dimitri B. Papadimitriou, Gennaro Zezza, and Michalis Nikiforos
  Abstract

  If the Congressional Budget Office’s recent projections of government revenues and outlays come to pass, the United States will not grow fast enough to bring down the unemployment rate between now and 2016. The public sector deficit will decline from present levels, endangering the sustainability of the recovery. But as this new Strategic Analysis shows, […]

  Download Strategic Analysis, October 2013 PDF (908.04 KB)
• Strategic Analysis October 16, 2013

  Η εδραίωση της ανάκαμψης: Προοπτικές και πολιτικές για τις Ηνωμένες Πολιτείες

  Dimitri B. Papadimitriou, Gennaro Zezza, and Michalis Nikiforos
  Abstract

  Στην περίπτωση που επαληθευτούν οι προβλέψεις του Γραφείο Προϋπολογισμού του Κογκρέσου για τα κρατικά έσοδα και τις δαπάνες, η οικονομία των Ηνωμένων Πολιτειών δεν θα μπορέσει να αναπτυχθεί αρκετά γρήγορα προκειμένου να μειωθεί το ποσοστό της ανεργίας από σήμερα έως το 2016. Το έλλειμμα θα μειωθεί από τα σημερινά του επίπεδα, θέτοντας σε κίνδυνο τη […]

  Download Στρατηγική Ανάλυση, Οκτώβριος 2013 PDF (1.94 MB)
• Policy Notes No. 9 October 10, 2013

  A New “Lehman Moment,” or Something Worse?

  Michalis Nikiforos
  Abstract

  The United States entered the second week of a government shutdown on Monday, with no end to the deadlock in sight. The cost to the government of a similar shutdown in 1995–96 amounted to $2.1 billion in today’s dollars. However, the cost and broader consequences of today’s shutdown are not yet clear—especially since the US […]

  Download Policy Note 2013/9 PDF (242.10 KB)
• Working Paper No. 777 October 07, 2013

  A Simple Model of Income, Aggregate Demand, and the Process of Credit Creation by Private Banks

  Giovanni Bernardo, and Emanuele Campiglio
  Abstract

  This paper presents a small macroeconomic model describing the main mechanisms of the process of credit creation by the private banking system. The model is composed of a core unit—where the dynamics of income, credit, and aggregate demand are determined—and a set of sectoral accounts that ensure its stock-flow consistency. In order to grasp the […]

  Download Working Paper No. 777 PDF (735.79 KB)
• Working Paper No. 776 September 30, 2013

  Fiscal Policy and Rebalancing in the Euro Area

  Achim Truger, and Eckhard Hein
  Abstract

  The German debt brake is often regarded as a great success story, and has therefore served as a role model for the Euro area and its fiscal compact. In this paper we fundamentally criticize the debt brake. We show that (1) it suffers from serious shortcomings, and its success is far from certain even from […]

  Download Working Paper No. 776 PDF (458.46 KB)
• Working Paper No. 776 September 30, 2013

  Δημοσιονομική πολιτική και επανεξισορρόπηση στην ευρωζώνη

  Achim Truger, and Eckhard Hein
  Abstract

  Το «φρένο χρέους» στη Γερμανία θεωρείται επιτυχημένη πολιτική και ως εκ τούτου λειτουργεί ως πρότυπο για τη ζώνη του ευρώ και το λεγόμενο «δημοσιονομικό σύμφωνο». Στην παρούσα εργασία ασκούμε έντονη κριτική στο «φρένο χρέους». Πρώτον, δείχνουμε ότι η πρόταση πάσχει από σοβαρές αδυναμίες και πώς η επιτυχία της συγκεκριμένης πολιτικής δεν είναι καθόλου βέβαιη ακόμη […]

  Download Επιστημονική Εργασία υπό Εξέλιξη (Working Paper) No. 776 PDF (663.14 KB)
• Working Paper No. 775 September 26, 2013

  Wage and Profit-led Growth

  Matías Vernengo, and Esteban Pérez-Caldentey
  Abstract

  We argue that a fundamental difference between Post-Keynesian approaches to economic growth lies in their treatment of investment. Kaleckian-Robinsonian models postulate an investment function dependent on the accelerator and profitability. Some of these models rely on the importance of profitability, captured by the profit share, to make the case for profit-led growth. For their part, […]

  Download Working Paper No. 775 PDF (792.68 KB)
• One-Pager No. 42 September 16, 2013

  Exit Keynes the Friedmanite, Enter Minsky’s Keynes

  Robert J. Barbera
  Abstract

  Perhaps the most indictable offense that mainstream economists committed, from 1988 through 2008, was to retrace Keynes’s path of discovery from 1924 (A Tract on Monetary Reform) through 1936 (The General Theory). Wholesale deregulation of finance and categorical confidence in a reductionist role for central banks came into being as the conventional wisdom embraced the […]

  Download One-Pager No. 42 PDF (73.24 KB)
• One-Pager No. 42 September 16, 2013

  Έξω ο Κέυνς ο φριντμανικός, μέσα ο Κέυνς του Μίνσκι

  Robert J. Barbera
  Abstract

  Ίσως το πιο σοβαρό και καταδικάσιμο παράπτωμα που διέπραξαν οι καθεστωτικοί οικονομολόγοι την περίοδο 1988-2008 ήταν να επανεξετάσουν, βήμα προς βήμα, την πορεία του Keynes από το 1924 μέχρι το 1936. Η ολική απορρύθμιση του χρηματοπιστωτικού συστήματος και η άκρατη εμπιστοσύνη στον περιοριστικό ρόλο των κεντρικών τραπεζών προέκυψαν όταν η συμβατική σοφία αγκάλιασε την άποψη […]

  Download Μονοσέλιδο No. 42 PDF (230.63 KB)
• Working Paper No. 774 September 12, 2013

  Economic Crises and the Added Worker Effect in the Turkish Labor Market

  İpek Ilkkaracan
  Abstract

  Turkish economic growth has been characterized by periodic crises since financial liberalization reforms were enacted in the early 1990s. Given the phenomenally low female labor force participation rate in Turkey (one of the lowest in the world) and the limited scope of the country’s unemployment insurance scheme, there appears to be ample room for a […]

  Download Working Paper No. 774 PDF (1.14 MB)
• One-Pager No. 40 September 04, 2013

  Η Ομοσπονδιακή Τράπεζα των ΗΠΑ νεκρανάστησε την Wall Street

  Nicola Matthews
  Abstract

  Η Nicola Matthews, από το Πανεπιστημίο του Μιζούρι στο Κάνσας Σίτι, παρουσιάζει τα ευρήματα της έρευνάς της σχετικά με τις πρακτικές δανεισμού της Ομοσπονδιακής Τράπεζας των ΗΠΑ (Fed) μετά το ξέσπασμα της παγκόσμιας χρηματοοικονομικής κρίσης του 2008. Εφαρμόζοντας τις αρχές του Walter Bagehot, ανακαλύπτει ότι η Fed απομακρύνθηκε από την παραδοσιακή λειτουργία της κεντρικής τράπεζας […]

  Download Μονοσέλιδο No. 40 PDF (229.17 KB)
• One-Pager No. 40 September 04, 2013

  The Fed Rates that Resuscitated Wall Street

  Nicola Matthews
  Abstract

  Nicola Matthews, University of Missouri–Kansas City, presents the main findings of her research on the Fed’s lending practices following the global financial crisis of 2008. Applying Walter Bagehot’s principles, she finds that the Fed departed from the traditional lender-of-last-resort function of a central bank by lending to insolvent banks without good collateral–and below penalty rates. […]

  Download One-Pager No. 40 PDF (73.06 KB)
• Working Paper No. 773 August 29, 2013

  Keynes’s Employment Function and the Gratuitous Phillips Curve Disaster

  Egmont Kakarot-Handtke
  Abstract

  Keynes had many plausible things to say about unemployment and its causes. His “mercurial mind,” though, relied on intuition, which means that he could not strictly prove his hypotheses. This explains why Keynes’s ideas immediately invited bastardizations. One of them, the Phillips curve synthesis, turned out to be fatal. This paper identifies Keynes’s undifferentiated employment […]

  Download Working Paper No. 773 PDF (437.37 KB)
• Working Paper No. 772 August 29, 2013

  Ο επαναπροσανατολισμός της δημοσιονομικής πολιτικής

  Pavlina R. Tcherneva
  Abstract

  Στην παρούσα εργασία επιχειρείται η κριτική της δημοσιονομικής πολιτικής όπως εμφανίζεται στη θεωρία και εφαρμόζεται στην πράξη. Συγκεκριμένα, εξετάζονται δύο μέθοδοι σταθεροποίησης από την πλευρά της ζήτησης: η συμβατική δαπάνη για την τόνωση της ζήτησης (pump priming) και ο νέος προορισμός της αποτελεσματικότητας της δημοσιονομικής πολιτικής που εντοπίζεται σήμερα στη βιβλιογραφία γύρω από τη θεωρία […]

  Download Επιστημονική Εργασία υπό Εξέλιξη No. 772 PDF (688.57 KB)
• Working Paper No. 772 August 29, 2013

  Reorienting Fiscal Policy

  Pavlina R. Tcherneva
  Abstract

  The present paper offers a fundamental critique of fiscal policy as it is understood in theory and exercised in practice. Two specific demand-side stabilization methods are examined here: conventional pump priming and the new designation of fiscal policy effectiveness found in the New Consensus literature. A theoretical critique of their respective transmission mechanisms reveals that […]

  Download Working Paper No. 772 PDF (499.89 KB)
• Policy Notes No. 8 August 01, 2013

  «Ασυνήθιστες και επείγουσες συνθήκες»: Τρόποι με τους οποίους μπορεί η Fed να τονώσει την πραγματική οικονομία

  William Greider
  Abstract

  Αν και δεν είναι ευρέως κατανοητό, η Ομοσπονδιακή Τράπεζα των ΗΠΑ (Fed) διαθέτει τεράστια ανεκμετάλλευτη δύναμη για να τονώσει άμεσα την οικονομία ή να επηρεάσει τις ροές του δανεισμού και δαπανών που δημιουργούν θέσεις εργασίας. Αν λειτουργήσει με αυτό τον τρόπο, θα μπορούσε να εκπληρώσει τη συχνά παραμελημένη «διπλή εντολή» με την οποία είναι εξουσιοδοτημένη: […]

  Download Σημείωμα Πολιτικής 2013/8 PDF ()
• Policy Notes No. 8 August 01, 2013

  “Unusual and Exigent”: How the Fed Can Jump-start the Real Economy

  William Greider
  Abstract

  Though it is not widely understood, the Federal Reserve has enormous untapped power to directly stimulate or influence the flows of lending and spending that generate jobs. Doing so would fulfill the Fed’s often neglected “dual mandate”: to strive for maximum employment as well as stable money. Fed technocrats often plead that legal or technical […]

  Download Policy Note 2013/8 PDF (200.54 KB)