短信・雑感

2024年

New Frontiers of Post Keynesian economics

§1. Introduction
§2. Core framework
2.1 Total view on the economy
2.2 Bsic assumptions
2.3 A set of production techniques that supports a price systedm
2.4 The production system can follow slow change of final demand
2.5 Economy is a self-organized system
§3. Comparison with Three Mainstream Theories
3.1 DSGE approach versus constant price dynamicm
3.2 Aggregate production function
3.3 RBC theory versus constant price dynamics
§4. Elucidating Kaleckian confusion
§5. Dynamic processes in many-product economy
5.1 Prices and the given structure
5.2 A first step to dynamical analyses
5.3 Investment and savings
5.4 Investment fiance and Robertson identity
5.5 Constraint for firms's investment
5.6 Implications of the first step dynamics
§6. A large open economy
6.1 Dosi and his colleagues' insight
6.2 Ian Steedman's research program: why did it fail
6.3 Basics of new trade theory
6.4 Gloabal value chains and input trade
6.5 Unemployment and potential of value adjustment
7. When do prices change?
7.1 Majore cases when prices change
7.2 Too rapid growth
7.3 Imported inflation
7.4 Labor shortage
7.5 Workers struggle for hiegher wages_
7.6 Conflicting claims inflation
7.7 Productivity gap inflation
7.8 Income shares
7.9 Technological change
§8. Morishima, Pasinetti, and Okishio
8.1 Morishima and problems of his research program
8.2 Paninetti and his "separation theorem"
8.3 Okishio and Marx-biased technical change
§9. Some confusions on the concept of increasing return
References

Friedman and Schwartz (1963) argued in a comprehensive empirical study that monetary shocks are the major cause of business cycle fluctuations. They observed that sharp declines in the money stock occurred prior to severe economic downturns.

The apparent inconsistencies of economic fluctuations with economic theory that abstracted from money led to widespread acceptance of the Friedan-Schwartz view even though a theoretical foundation was lacking. Real business cycle theory finds that a major fraction of US postwar business cycle fluctuations is accounted for by persistent shock to total factor productivity (see Kydland and Prescott (1991)). If money is not a major contributing factor to business cycle fluctuations, why is money highly correlated with output? Freeman and Kydland (1998) provides a possible answer to using a transaction based theory of money.
(Edward C. Prescott 1998 Business Cycle Research: Methods and Problems)

Within macroeconomic reasoning, two completely separate methodologies have been developed: one for neoclassical theory based on equilibrium models, and another for the post-Keynesian theory based upon causal relationships and path dependent analysis, where uncertainty, a lack of information, institution and supply and demand factors under constant change create a sustained and (partially) unpredictable dynamic structure.