↳ Keynes

August 8th, 2020

↳ Keynes

Economics, Bosses, and Interest

An interview with Stephen Marglin

Stephen Marglin is Walter S. Barker Professor Economics at Harvard University, where he has taught since he received tenure in 1968. Somewhat infamous for his post-tenure radicalism, Marglin has published extensively on a wide range of topics over his decades-long career. Among his most cited early works is the two-part "What Do Bosses Do?", which sought to explain hierarchical production as a function of accumulation, not technical efficiency. Divisions of labor between workers, managers, and bosses do not, Marglin argued, serve increases in productivity and material prosperity, but rather the consolidation of wealth and power.

Similarly influential work conducted with Amit Bhaduri contested neoclassical models that view economic growth as a product of technological advancement and increases in the factors of production. Drawing on a Kaleckian framework which sees output as a function of effective demand, their paper distinguishes between "wage-led" and "profit-led" growth regimes. In the former, income redistribution increases employment and productivity, and in the latter it does not.

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July 22nd, 2019

...Höhere Wesen befehlen

PHENOMENAL WORLD

Blog highlights

At the Phenomenal World, we have been publishing pieces covering a wide-range of topics, many of which are common ground in this newsletter. Below, in no particular order, is a round-up of some recent work in case you missed it.

Be on the lookout for upcoming posts over the next months—including work on counterfactual fairness by Lily Hu; an interview with scholar Destin Jenkins on race and municipal finance; an examination of the philosophy of Neyman-Pearson testing by Cosmo Grant; and a piece on UBI in the 1970s by Nikita Shepard—and subscribe to the Phenomenal World newsletter to get new posts directly in your inbox.

As always, thank you for reading.

  • Max Kasy discusses the standard of social science experimentation—randomized controlled trials—and proposes, in a new working paper with his colleague Anja Sautmann, a new method for designing experiments that lead to the optimal policy choice. Link.
  • Amanda Page-Hoongrajok reviews James Crotty's new book, Keynes Against Capitalism. Page-Hoongrajok discusses Keynes's thought, Crotty's interventions, and the relevance of these discussions for the current macroeconomic environment. Link.
  • Owen Davis surveys the monopsony literature, dispelling some persistent misunderstandings and clarifying its significance for the state of current economics research. Link.
  • Maya Adereth interviews the legendary and influential political scientist Adam Przeworski. In an expansive conversation, Przeworski discusses his intellectual trajectory, his experience and observations around Allende's government in Chile, the neoliberal turn, and the future of popular politics. Link.
  • Greg Keenan examines the history of copyright formalities in the United States and Europe, arguing that the frequently derided US copyright regime is, in fact, well suited for the digital age. Link.
  • Hana Beach interviews basic income scholar Almaz Zelleke on the neglected history of feminist welfare rights activists's campaigns for unconditional cash transfers, the complex relationship between advocacy and policy, and the current drive towards UBI. Link.
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July 11th, 2019

Keynes versus the Keynesians

A new book by James Crotty reexamines the career of John Maynard Keynes

What drives economic growth and stagnation? What types of methodologies and tools do we need to accurately explain economic epochs in the past and present? What models and policy approaches can lead to prosperity for all? These questions occupied the mind of John Maynard Keynes from World War One until his death in 1946. Keynes, one of the most influential economists of all time, is often claimed to have “saved capitalism.” His legacy, as understood by most of the economics profession, was to cure laissez-faire capitalism with countercyclical fiscal policy—using expansionary government spending during recessions to increase output and employment.

In his new book, Keynes Against Capitalism, economist James Crotty argues that this interpretation of Keynes is profoundly mistaken. Keynes, Crotty argues, wanted to replace capitalism with his own program of “liberal socialism.” Through the book, he demonstrates that 1) Keynes fundamentally rejected the theoretical model that undergirds laissez-faire capitalism; and 2) the cornerstone of Keynes’ liberal socialism program was permanent, large-scale public and semi-public investment guided by the state, accompanied by low interest rates and capital controls.

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