Showing papers by "John E. King published in 2013"

A case for pluralism in economics

Abstract: Revised in October 2012, this is the text of the Third Biennial Keith Hancock Lecture, presented as part of the outreach programme of the Academy of the Social Sciences in Australia (ASSA) on Tuesday 7 August 2012 at the State Library Victoria, on Tuesday 18 September at the University of Sydney, and on Tuesday 25 September 2012 at Curtin University. Professor King argues that economics is unique among the social sciences in having a single monolithic mainstream, which is either unaware of or actively hostile to alternative approaches. He presents a case for pluralism in economics, derived from the complex and ceaselessly changing nature of the world in which we live. He argues first, that economic reality is very complicated, so that the questions that economists ask are unlikely to have simple answers. Second, he argues that economic reality is fluid and subject to continuous change, so that the quest for a single, 'general' theory applicable to human behaviour in all societies, at all points in time, is a delusion. To illustrate the case for pluralism, Professor King will draw on the recent history of the global economy, the problems encountered in understanding it and the dangerous policy implications that have been drawn from mainstream theory.

Hunger in the balance: the new politics of international food aid

Abstract: Hunger in the balance: the new politics of international food aid, by Jennifer Clapp, Ithaca, NY, Cornell University Press, 2012, xiv + 201 pp., $29.95 (hardback), ISBN 0-8014-5039-X

The Elgar Companion to Post Keynesian Economics, Second Edition

Abstract: This thoroughly revised and updated second edition provides a comprehensive guide to Post Keynesian methodology, theory and policy prescriptions.

A Brief Introduction to Post Keynesian Macroeconomics

Abstract: I begin by setting out the core of Post Keynesian macroeconomics, using six propositions asserted by Tony Thirlwall and drawing some important conclusions from them. I then distinguish three schools within Post Keynesian theory: the fundamentalist Keynesian approach taken by Paul Davidson, the Kaleckian variant represented by Eckhard Hein, and Hyman Minsky’s financial instability hypothesis. I take note of both their differences and their very significant points of agreement. I continue by identifying what Post Keynesian macroeconomics is not, and outlining some very substantial criticisms of both “Old Keynesian” and “New Keynesian” theory. There follows an historical interlude, in which I sketch the development of Post Keynesian theory in Cambridge (UK) and the United States in the 1950s and 1960s and summarise the contributions of two eminent Austrian theorists, Josef Steindl and Kurt Rothschild. I continue by discussing the distinctive Post Keynesian position on questions of macroeconomic policy, focussing on monetary and fiscal policy, the regulation of prices and incomes, and the reform of the international monetary system. I then apply these principles to explaining the Global Financial Crisis that began in 2007 and suggesting some Post Keynesian policy proposals that might make similar crises less likely in the future. I conclude by discussing the relationship between Post Keynesianism and three other schools of heterodox economic theory: Marxism, institutionalism and behavioural economics. Space constraints prevent me from discussing the relationship between Post Keynesianism and six other heterodox schools: feminism, ecological economics, evolutionary economics, Sraffian theory, social economics, and Austrian theory (of the Hayek-von Mises variety). They also rule out any systematic discussion of methodological issues; the theories of growth and of economic development; Post Keynesian microeconomic theory; a possible Post Keynesian contribution to environmental economics; the implications of complexity and path-dependence for the equilibrium income

Horizontalists and Verticalists after 25 years

Abstract: We outline the core claims of Basil Moore's book Horizontalists and Verticalists: The Macroeconomics of Credit Money and place them in their historical, contemporary and present contexts. Several theoretical problems raised by the book and recent developments in the operation of financial markets and monetary policy are discussed. We find that Moore is a key figure in the theory of endogenous money, but his version of the theory was viewed as radical and was by no means widely accepted. Recent developments have validated many of his ideas, which are now commonplace, but others remain unresolved and controversial.

Should post-Keynesians make a behavioural turn?

Abstract: This paper deals with the relationship between post-Keynesian and behavioural economics. I begin by responding critically to Paul Davidson’s claim that Keynes was the first behavioural economist. Then I discuss some recent work in behavioural macroeconomics, which reveals some important strengths but also some fundamental weaknesses. Next I outline what (Old) behavioural economists have had to say about macroeconomics, beginning with the father of the school, Herbert Simon, and considering the contributions of some of his disciples. I then reverse the question and ask what post-Keynesians have had to say about behavioural economics, Old and New. I conclude by identifying some potential sources of difficulty and also suggesting some areas of macroeconomics where cooperation between post-Keynesians and behavioural economists seems especially promising.

Ricardo on Trade

Abstract: This paper considers the context, the details and some of the criticisms levied against the well-known numerical example of comparative advantage that David Ricardo set out in chapter 7 of his PRINCIPLES. Particular attention is paid to the distribution of the gains from trade, to the relative importance of static and dynamic factors and to the political dimensions of trade theory. The paper concludes by relating Ricardo's trade theory to current controversies over globalization, unequal exchange, Third World poverty and the existence of different varieties of capitalism.

Between Decisions (Zwischen den Entscheidungen) (English translation of Rudolf Hilferding's article.)

Abstract: This article is the English translation of Rudolf Hilferding's article "Zwischen den Entscheidungen", first published in: Die Gesellschaft. Internationale Revue fur Sozialismus und Politik, Volume 10, Part 1, January 1933, pp. 1–9. Rudolf Hilferding, the author of "Finance Capital" and leading politician of the German Social-Democratic Party analyses the political situation in Germany at the end of 1932. Most striking is his fierce anti-communism, shared by his party, which is decisive for Hitler's rise to power. This political failure had the immediate consequence that Hilferding himself, to save his live, like many other social-democrates, communists and jews, had to leave Germany. Hilferding, having being delivered by French police to the Gestapo died in custody in Paris on February 10, 1941.

Book Review: Equilibrium and Evolution: Alfred Marshall and the Marshallians:

Abstract: Review(s) of: Equilibrium and evolution: Alfred Marshall and the Marshallians, by Neil Hart, Palgrave Macmillan, Basingstoke, 2012; xiii + 242 pp., 9780230302709, 65 pounds.