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262 results

2018
Level: beginner
Keynes, following the tradition of Marx, argued that all values are created by labour and profits. However, functional income distribution between wages and profits is explained differently. In Marx's explanation of functional income distribution, wages are given as a basket of goods needed for the reproduction needs of the working class. Profits are then the remaining part of income creation. Given the capital stock, the profit rate can be calculated. The paper shows that Marx's explanation of functional income distribution has several theoretical and practical shortcomings. The Keynesian paradigm in the tradition of the original Keynes provides an alternative. Here the profit rate is given by processes in the financial market, and, among other things, by the interest rate. Monopolistic or oligopolistic structures, following the tradition of Kalecki, can also influence the profit rate. In addition, financialisation can push up the profit rate. Given the capital stock the consumption basket of workers depends on the level of productivity and the profit rate explained in a Keynesian and Kaleckian way.
2020
Level: beginner
Marx’s theory of the falling rate of profit is not only empirically borne out, but the theory he proposed seems to describe accurately how that happens. Furthermore, the whole process is useful for understanding the history of contemporary capitalism.
2018
Level: beginner
In this short video 'Raghuram Rajan’s Dosa Economics Explained', the famous theory of Dr. Raghuram Rajan, ex-governor of Reserve Bank of India (RBI), Dosa Economics, has been explained using a very simple example of Dosa ( a delicacy of India). Here, Dr. Raghuram Rajan tries to explain that low interest rate and low inflation is much better than high interest rate and high inflation.
2014
Level: advanced
The economist Thomas Piketty presents a central argument of his book Capital in the Twenty-First century: if the rate of return to capital generally exceeds an economy's growth rate, this leads to a higher concentration of wealth in the long run. He furthermore shows with historical data how wealth and income inequality increased within the past decades.
2021
Level: advanced
This article provides a contextual framework for understanding the gendered dimensions of the COVID-19 pandemic and its health, social, and economic outcomes. The pandemic has generated massive losses in lives, impacted people’s health, disrupted markets and livelihoods, and created profound reverberations in the home. In 112 countries that reported sex-disaggregated data on COVID-19 cases, men showed an overall higher infection rate than women, and an even higher mortality rate. However, women’s relatively high representation in sectors hardest hit by lockdown orders has translated into larger declines in employment for women than men in numerous countries. Evidence also indicates that stay-at-home orders have increased unpaid care workloads, which have fallen disproportionately to women. Further, domestic violence has increased in frequency and severity across countries. The article concludes that policy response strategies to the crisis by women leaders have contributed to more favorable outcomes compared to outcomes in countries led by men.
2015
Level: advanced
Eckhard Hein criticises the mainstream's view of secular stagnation as the result of a negative real equilibrium interest rate. Arguing in a Keynesian spirit with particular reference to Steindl, secular stagnation is considered to be a result of shift in the functional income distribution, and oligopolistic organisation of industries, leading to excess capacity and reluctance to invest. This acts as a drag on effective demand and results in secular stagnation. Distributional policies and public investment can, however, overcome stagnation its tendencies.
2019
Level: expert
This paper attempts to clarify how the European economic crisis from 2007 onwards can be understood from the perspective of a Marxian monetary theory of value that emphasizes intrinsic, structural flaws regarding capitalist reproduction. Chapter two provides an empirical description of the European economic crisis, which to some extent already reflects the structural theoretical framework presented in chapter three. Regarding the theoretical framework Michael Heinrich's interpretation of 'the' Marxian monetary theory of value will be presented. Heinrich identifies connections between production and realization, between profit and interest rate as well as between industrial and fictitious capital, which represent contradictory tendencies for which capitalism does not have simple balancing processes. In the context of a discussion of 'structural logical aspects' of Marx's Critique of the Political Economy, explanatory deficits of Heinrich's approach are analyzed. In the following, it is argued that Fred Moseley's view of these 'structural logical aspects' allows empirical 'applications' of Marxian monetary theories of value. It is concluded that a Marxian monetary theory of value, with the characteristics of expansive capital accumulation and its limitations, facilitates a structural analysis of the European economic crisis from 2007 onwards. In this line of argument, expansive production patterns are expressed, among other things, in global restructuring processes, while consumption limitations are mitigated by expansive financial markets and shifts in ex-port destinations.
2015
Level: advanced
In a challenge to conventional views on modern monetary and fiscal policy, this book presents a coherent analysis of how money is created, how it functions in global exchange rate regimes, and how the mystification of the nature of money has constrained governments, and prevented states from acting in the public interest.
2020
Level: advanced
What influence do changes in tax policy or state decisions on expenditure have on economic growth? For decades, this question has been controversially debated.
2020
Level: beginner
The Great Recession 2.0 is unfolding before our very eyes. It is still in its early phase. But dynamics have been set in motion that are not easily stopped, or even slowed. If the virus effect were resolved by early summer—as some politicians wishfully believe—the economic dynamics set in motion would still continue. The US and global economies have been seriously ‘wounded’ and will not recover easily or soon. Those who believe it will be a ‘V-shape’ recovery are deluding themselves. Economists among them should know better but are among the most confused. They only need to look at historical parallels to convince themselves otherwise.
2009
Level: beginner
A concise introduction to Marx's Labour Theory of Value, the three ratios and the falling rate of profit hypothesis.
1977
Level: beginner
John K. Galbraith recounts episodes in the history of money such as the creation of the bank of Amsterdam, John Law's fraudulent Bank Royal, the inception of the Bank of England and of the Federal Reserve to illustrate concepts such as money creation by commercial banks, the bank rate, open market operations or the money supply in general. The emotions, myths and struggles surrounding money are addressed and explained in a clear and consistent manner.
2021
Level: beginner
Nature and communities in the global south is being overwhelmed at a shocking rate. In many places this is due to ventures such as large-scale open-pit mining, oil extraction in tropical areas, and the spread of monocultures. These and other such forms of natural resource appropriation are usually known as extractivisms.
2021
Level: beginner
Based on a paper by Jason Hickel and Giorgos Kallis Decoupling refers to the separation of economic value creation material extraction and pollution. Ecological limits pose a challenge to growth-led development and the low historical and predicted rate of decoupling suggests that long-term sustainable growth-led development is impossible.
2018
Level: beginner
Although sometimes used as synonyms, economic growth and economic development refer to different processes. While economic growth refers to an increase in real national income and output (i.e., GDP growth rate), economic development refers to an improvement in the quality of life and living standards (i.e., life expectancy).
2021
Level: beginner
What’s inflation? Why is it relevant? And is there an agreed theory about its roots and causes, or is it a contentious concept? That’s what this text is all about: We define what inflation actually means before we delve into the theoretical debate with an interdisciplinary and pluralist approach: What gives rise to it, what factors might influence it, and, consequently, what might be done about it?
 
Austrian economics focuses on the economic coordination of individuals in a market economy. Austrian economics emphasises individualism, subjectivism, laissez-faire politics, uncertainty and the role of the entrepreneur, amongst others.
 
Post-Keynesians focus on the analysis of capitalist economies, perceived as highly productive, but unstable and conflictive systems. Economic activity is determined by effective demand, which is typically insufficient to generate full employment and full utilisation of capacity.
2007
Level: advanced
This book is a welcome consolidation and extension of the recent expanding debates on happiness and economics. Happiness and economics, as a new field for research, is now of pivotal interest particularly to welfare economists and psychologists. This Handbook provides an unprecedented forum for discussion of the economic issues relating to happiness.
2019
Level: advanced
Modern authors have identified a variety of striking economic patterns, most importantly those involving the distribution of incomes and profit rates. In recent times, the econophysics literature has demonstrated that bottom incomes follow an exponential distribution, top incomes follow a Pareto, profit rates display a tent-shaped distribution. This paper is concerned with the theory underlying various explanations of these phenomena. Traditional econophysics relies on energy-conserving “particle collision” models in which simulation is often used to derive a stationary distribution. Those in the Jaynesian tradition rely on entropy maximization, subject to certain constraints, to infer the final distribution. This paper argues that economic phenomena should be derived as results of explicit economic processes. For instance, the entry and exit process motivated by supply decisions of firms underlies the drift-diffusion form of wage, interest and profit rates arbitrage. These processes give rise to stationary distributions that turn out to be also entropy maximizing. In arbitrage approach, entropy maximization is a result. In the Jaynesian approaches, entropy maximization is the means.
2009
Level: beginner
The historical situation of low interest rates after the Fed's response to the 2001 crisis alongside with huge foreign money inflow to the US are presented as the historical context in which subprime lending and financial instruments like CDOs and CDS evolved. Then those instruments as well as the concept of leverage are explained briefly.
2014
Level: advanced
The authors show how consumers, business, the Federal Reserve, and government take into account what's going on around them to make critical decisions like buying new products, building new factories, changing interest rates, or setting budget goals. The book provides a clear roadmap to understanding the whole story behind the global economy.
2014
Level: beginner
In this lecture Ben Fine aims at stimulating interest for and explaining the relevance of Marxist Political Economy. Ben Fine dedicates the first half of his comprehensible lecture to the question on how mainstream economics became the way it is by explaining its key concepts and how those evolved during the past 150 years. While critically reflecting those concept he also emphasizes that mainstream economics does not consider historical processes. This is the point of departure on his presentation of the core terms and crucial categories of Marxist Political Economy: e.g. the production process and class relations (Part 1). Part 2 examines the consequences of the capitalist mode of production and its propensity to crises. Ben Fine illustrates this Marxist analysis with the example of the current crisis and explains current conditions for the accumulation of capital.
2014
Level: beginner
In this lecture Ben Fine aims at stimulating interest for and explaining the relevance of Marxist Political Economy. Ben Fine dedicates the first half of his comprehensible lecture to the question on how mainstream economics became the way it is by explaining its key concepts and how those evolved during the past 150 years. While critically reflecting those concept he also emphasizes that mainstream economics does not consider historical processes. This is the point of departure on his presentation of the core terms and crucial categories of Marxist Political Economy: e.g. the production process and class relations (Part 1). Part 2 examines the consequences of the capitalist mode of production and its propensity to crises. Ben Fine illustrates this Marxist analysis with the example of the current crisis and explains current conditions for the accumulation of capital.
2013
Level: beginner
Stiglitz answers the question why globalization and world trade has not delivered on its promise of increased well being as much as classical economists thought, by pointing to the power asymmetries: firstly, between industrialized nations and developing nations and secondly, between special corporate interest and social interests. In his analysis, developed countries and MNCs were able to extract the benefits, while shifting the costs (i.e. pollution) to states and communities with lesser power. Amongst many other historical examples the pharmaceutical and the mining industry are discussed to some length.
2019
Level: advanced
Since Daniel Kahneman won the Nobel Memorial Price in Economic Sciences in 2002, a new branch of economics gained academic and popular interest. That is, the so-called area of behavioural economics. However, some scholars claim that this new area of economics is not changing much of the mainstream paradigm. Why?
Level: beginner
"Energy issues have always been important in international relations, but in recent years may have become even more important than in the past due to the widespread awareness of existing limits to energy sources and negative climate impacts. The course discusses global trends in energy consumption and production, various available scenarios for potential developments in the coming decades, the availability of oil reserves and the evolution of the oil industry. It then discusses natural gas and highlights the differences between oil and gas. It will also discuss renewable energy sources, nuclear energy and EU energy policy. The course aims at providing students whose main interest is in international relations a background on energy resources, technology and economic realities to allow them to correctly interpret the political impact of current developments. It also aims at providing students, who already have a technical background in energy science or engineering, with the broad global view of energy issues that will allow them to better understand the social, economic and political impact of their technical knowledge."
2018
Level: advanced
Islamic finance's phenomenal growth owes to the Shariah compliant nature of its financial instruments. Shariah forbids the charging of interest (Riba) and instead promulgates risk-sharing and trade-based modes of financing. The Islamic financial industry has been subject to both critique and admiration. Critics argue that Islamic instruments (bearing debt-based structures) differ from their conventional counterparts only in legal lexicon and not in economic impact.
2014
Level: advanced
This innovative book offers targeted strategies for effectively and efficiently teaching economics at both undergraduate and postgraduate levels. It provides professors and other teachers of economics various techniques to engage and retain the interest of students, and challenges them to apply both knowledge and methodological tools to a range of economic problems.
1973
Level: beginner
The book is offered, in the first instance, to students who are beginners in economics, but some parts of it may be of wider interest. The three topics, Economic Doctrines, Analysis and Modern Problems, might be the subject of concurrent courses or they may be studied consecutively.
2018
Level: advanced
Macroeconomics in Context: A European Perspective lays out the principles of macroeconomics in a manner that is thorough, up to date, and relevant to students. With a clear presentation of economic theory throughout, this latest addition to the bestselling "In Context" set of textbooks is written with a specific focus on European data, institutions, and historical events, offering engaging treatment of high-interest topics, including sustainability, Brexit, the euro crisis, and rising inequality. Policy issues are presented in context (historical, institutional, social, political, and ethical), and always with reference to human well-being.
2020
Level: beginner
Modern Monetary Theory (MMT) is a school of monetary and macroeconomic thought that focuses on the analysis of the monetary and credit system, and in particular on the question of credit creation by the state.

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