Hence, this book aims to deal with asymmetries in Europe and to bridge the gap between the two perspectives. This work will initiate an integrative debate that is crucial for a deeper understanding of the current crisis and is an important resource for all students and scholars of IPE, European political economy and European politics. Book Summary: Leading experts on Kalecki have contributed special essays on what economists in the 21st century have to learn from the theories of Kalecki.
Book Summary: In analyzing money, contemporary economics has focused its attention on money's function as a store of value, neglecting its role as medium of circulation. When circulation is put center stage, it becomes apparent that the supply of money does indeed adapt to the needs of trade - and does so in many different ways, often ways that are difficult for a central bank to control, because they reflect the responses of banks and other financial institutions to market incentives.
But money's role in circulation must be coordinated with its store of value function, and both with finance. Failure here can lead to instability. The essays in this volume by internationally renowned economists cover these issues in original and contrasting analyses, presenting the American post-Keynesian perspective, on the one hand, and the point of view of the French Circulation School, on the other.
Book Summary: In this volume, Louis-Philippe Rochon and Hassan Bougrine bring together key post-Keynesian voices in an effort to push the boundaries of our understanding of banks, central banking, monetary policy and endogenous money.
Issues such as interest rates, income distribution, stagnation and crises — both theoretical and empirical — are woven together and analysed by the many contributors to shed new light on them. The result is an alternative analysis of contemporary monetary economies, and the policies that are so needed to address the problems of today. Book Summary: This fascinating book is the first to bring together and examine all aspects of the life and work of one of the most influential thinkers of the last century, John Maynard Keynes, whose theses are still hotly debated.
It combines, in an accessible, unique and cohesive manner, analytical, biographical and contextual elements from a variety of perspectives. Gilles Dostaler studies in detail the battles that Keynes led on various fronts - politics, philosophy, art, and of course economics - in the pursuit of a single and lifelong goal: to radically transform society to create a better world, a world pacified and freed from the neurotic pursuit of financial wealth and economic rentability, with art at its pinnacle.
Containing detailed presentations of the Bloomsbury group and the political history of Great Britain, Keynes and his Battles is an essential reference to this most important of 20th century figures whose central message remains as topical today as it ever was.
Scholars, students and researchers of economics - the history of economic thought in particular - political science, sociology, history, philosophy and the history of arts will find this an absorbing and revealing work. The book should also interest journalists, decision makers in society and all those who are preoccupied by the problems of our time. Book Summary: The essays in this volume are concerned with interpretations and extensions, both theoretical and empirical, of the work of Keynes and Kalecki, and of Sraffa, and with the relationships between the works of these three authors.
Book Summary: This book presents the most significant theoretical articles by Bertram Schefold to illuminate the development and the present state of modern classical theory. It assembles twenty heavily discussed papers on joint production and fixed capital, choice of technique and technical progress, composition of output and the relation between classical, neoclassical and keynesian economics.
There is a broad new introduction. The chapter on the critique of intertemporal general equilibrium is novel and represents an original theoretical advance. Book Summary: This timely book studies the economic theories of credit cycles and disturbances in the 20th century, presenting a nuanced view of the role of finance in the economy after the financial crash of Focusing on the work of economists from Marx onwards, Jan Toporowski moves beyond conventional monetary theory to offer an insightful critical alternative to current financial macroeconomics.
Book Summary: Comprehensive and authoritative, this book, written by a recognized authority on the subject explores the contributions to modern economics by John Maynard Keynes and addresses neglected, yet crucial aspects of the genesis of Keynesian economics. Book Summary: The second edition of this important textbook introduces students to the fundamental ideas of heterodox economics. It is written in a clear way by top heterodox scholars.
This introductory book offers not only a critique of the dominant approach to economics, but also presents a positive and constructive alternative. Students interested in an explanation of the real world will find the heterodox approach not only satisfying, but ultimately better able to explain a money-using economy prone to periods of instability and crises. Book Summary: This book provides a systematic account of financial crisis in the developing world by exploring how Minsky's theory may be extended to countries at early stages of financial development, going beyond the parameters of the established 'emerging market crisis' literature.
Book Summary: The essays in this book seek to identify the mechanisms that determine the extent and nature of economic growth. The subject is addressed under four headings: demand-determined growth, technical change, traverse and growth cycles. Book Summary: The essays in this volume explain the key structural features of financial inflation that give rise to financial crisis. These features include excessive reliance on finance to maintain economic activity through rising asset prices.
Reliance on asset inflation induces a preoccupation with property values and a new social divide between the asset-rich and the asset-poor that undermines the culture of the welfare state. When debt can no longer be supported by cash flow from asset markets, excess debt plunges economies into economic depression. Book Summary: 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.
Read more. Upon the retirement of Dr. Lalrintluanga, Principal on Of Mizoram has appointed Dr. Jennifer Lalbiakdiki as the new Principal w. She took the charge of Principal from Dr. Lalrintluanga on 1st March She was promoted to Associate Professor w. Under her able guidance and leadership, Govt. Criticisms: Keynes theory of interest has been criticized on the following grounds: 1.
Students and members of the staff attended both days of the event in traditional and ethnic attires. The theme of the event was elaborated upon by teachers on the first day. The main event held on October 18, at the College Campus consisted of a function, exhibition, outdoor and entertainment pr Jenifer Lalbiakdiki Principal Upon the retirement of Dr. The higher the interest elasticity of liquidity preference, the lower the cost of drawing idle money, the less the rise of interest rate, the more the increase of income.
Contrarily, the lower the interest elasticity of liquidity preference, the higher the cost of drawing idle money, the more the rise of interest rate, the less the increase of income.
Further, I would argue that the difference between desired investment and desired saving as mentioned above is equivalent to what Keynes C says an excess finance motive as a result of the increase of propensity to invest. That is, finance motive will increase first when propensity to invest increases.
Only when the excess finance motive is satisfied by the idle money, the excess investment can be realized and income can increase. According to Keynes, finance motive exists during what I call an investment-realization period, the period between the date when entrepreneurs make their investment decisions at the same time, they arrange their finance and the date when they actually make their investment.
If propensity to invest increases, finance motive will increase simultaneously, drawing idle money from inactive balances into economic operation and leading to the rise of interest rate.
Then the purchase contracts of investment goods will be signed between entrepreneurs and producers. After that, producers will make production decisions and seek more working capital for producing more investment goods. Consequently, transactions motive will increase, drawing more idle money from inactive balances into economic operation and leading to the rise of interest rate once more.
After the investment goods are delivered and payment is made, the investment process is completed, and the investment is finally realized. Moreover, if the increase of propensity to invest lasts, the increase of finance motive and transactions motive will last in subsequent investment-realization periods. When the economic operation is constant, finance motive is a constant revolving fund, the amount of which equates to the amount of the desired investment or desired saving during an investment-realization period.
When all the other conditions are the same, the amount of finance motive depends on the length of the investment-realization period: the longer the investment-realization period, the more the finance motive for demanding money.
In this way, finance motive transforms the flow demand for funds into the stock demand for money. Second, finance motive and transactions motive are different demands for money and play different roles in economic operation. They simultaneously exist in economic operation and change at different time in expansion or contraction of economy.
Therefore, finance motive cannot be just a subcategory or addendum of transactions motive. Hereto, we arrive at a new interpretation of liquidity preference theory. Without finance motive, liquidity preference theory is terribly half-baked, or even false. However, it is very strange that finance motive can hardly be found in the literatures after Keynes, e.
IS-LM model and most other interpretations of liquidity preference theory all overlook finance motive. Although Keynes later added finance motive to correct this mistake, the strong first impressions of The General Theory make most economists still consider his initial mistake the innovation and elite of the theory.
This misunderstanding results in that they think that transactions motive plays a fundamental role in liquidity preference theory and finance motive is dispensable. Thus, the inherent logic and essence of liquidity preference theory are covered up, leading to much confusion and many misinterpretations.
If Keynes had firstly introduced finance motive with its ex ante effect on interest rate, then brought forward transactions motive with its succedent effect on interest rate, liquidity preference theory would have become more logical and clear, and all the misunderstandings and controversies would have been cleared up naturally. An increase in activity raises the demand for cash, first of all to provide for the first of these time lags in circulation, and then to provide for the second of them.
Keynes, , p. Here, interest rate is determined by the total demand for and supply of money, and the finance motive for demanding money is determined by desired investment. However, as desired investment is determined by interest rate and marginal efficiency of capital, interest rate and desired investment have to be determined simultaneously. Thus, there is a circular logic in his theory of interest. Moreover, contrary to Hansen, I would argue that interest rate is determinate in the half-baked liquidity preference theory.
In The General Theory, two incomes are different from each other: the income that affects transactions motive, demand for money, and then interest rate; and the income determined by investment and then by interest rate and marginal efficiency of capital.
The first income, or the ex ante income, is realized before the investment is carried out. Therefore, the ex ante interest rate is just determined by the supply of money and the demand for money, the latter being determined by the ex ante income. This ex ante interest rate and marginal efficiency of capital will then collectively determine investment and the ex post income.
Accordingly, interest rate and income are not determined simultaneously, but sequentially. That means, Pasinetti is right in interpreting the half-baked liquidity preference theory. The sequentiality of the half-baked liquidity preference theory makes the simultaneous IS-LM model logically inconsistent.
It is the introduction of finance motive that makes interest rate and desired investment have to be determined simultaneously, and then results in the circular logic of the comprehensive liquidity preference theory. On the basis of above analysis, it is not difficult to see that Hansen makes two mistakes: 1 that he overlooks finance motive and does research on the half-baked liquidity preference theory; 2 he makes an incorrect interpretation of the half-baked liquidity preference theory.
When interest rate falls, desired investment will rise and desired saving will fall, so the difference will increase. It is , thus, clear that at a higher rate on interest the liquidity preference of the people declines, because people wish to take advantage of the higher At a lower rate of interest, i.
If there is an increase in liquidity preference, I. If, on the contrary , the supply of money increases from OQ to OQ2 assuming that the liquidity preference remains the same , the rate of interest will decline from Os2 to Os1.
Thus, according to keynes, the rate of interest equates the liquidity preference of the community with the amount of the supply of money in existence.
Explaination ON is the quantity of money available. The Rate of interest will be determined where the demand for money is in balance or equal to the fixed supply of money ON. Demand of money is equal to ON quantity of money at Or rate of interest. Or is the equilibrium rate of interest. Assuming no change in expectations and nominal income, an increase in the quantity of money will lower the rate of interest.
When the quantity of money increases from ON to ON. The rate of interest falls from Or to Or1 because the new quantity of money ON1 is in balance with demand for the money at Or1 rate of interest. Increase in money supply leads to the fall in the rate of interest. With initial equilibrium at Or, When the money supply is expanded from ON to ON1 , There emerges excess supply of money at the initial Or rate of the interest. The people would react to this excess quantity of money supplied by buying bonds.
As a result, The bond prices will go up which implies that the rate of interest will decline. This is how the increase in money supply leads to the fall in rate of interest. Keynes liquidity preference theory of interest has been criticized on the ground that it furnishes too narrow an explaination of the rate of interest. It links the desire for liquidity to three main motives.
The critics, however, point out that the desire for liquidity arises not only from the three main motives mentioned by keynes, but also from several other factor not stressed by him. Some critics point out that interest is not the reward for parting with liquidity as stressed by keynes. On the contrary, interest is the reward paid to the lender for the productivity of the capital. Keynes, theory of interest , according to critics, is of limited value from the supply side. If the liquidity preference of the.
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