scholarly journals Post-Keynesian alternative policies to curb macroeconomic imbalances in the Euro area

2015 ◽  
Vol 62 (2) ◽  
pp. 217-236 ◽  
Author(s):  
Eckhard Hein ◽  
Daniel Detzer
Keyword(s):  
Growth Rate ◽  
Euro Area ◽  
Balance Of Payments ◽  
Fiscal Policies ◽  
Policy Recommendations ◽  
Economic Policies ◽  
Regional Policies ◽  
Macroeconomic Imbalances ◽  
Current Account Imbalances ◽  
Differential Inflation

In this paper we outline alternative post-Keynesian policy recommendations addressing the problems of differential inflation, divergence in competitiveness and associated current account imbalances within the Euro area. We provide a basic framework in order to systematically address the related issues making use of Anthony P. Thirlwall?s (1979, 2002) model of a ?balance-of-payments-constrained growth rate? (BPCGR). Based on this framework, we outline the required stance for alternative economic policies and then we discuss the implications for alternative monetary, wage/incomes and fiscal policies in the Euro area as a whole, as well as the consequences for structural and regional policies in the Euro area periphery, in particular.

scholarly journals Trade and Industrialization Policies for an Accelerated Development in Pakistan

1990 ◽  
Vol 29 (3-4) ◽  
pp. 201-222 ◽  
Author(s):  
William E. James ◽  
Seiji Naya
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
Social Development ◽  
Balance Of Payments ◽  
Economic Policies ◽  
Macroeconomic Imbalances

Pakistan achieved high rates of economic growth from the mid-1970s. Growth was faciitated by the external circumstances that relaxed the balance-of-payments constraints. However, growth was not accompanied by an improved social development Moreover, as the external circumstances worsened, the underlying macroeconomic imbalances emerged and the growth slowed down. The paper assesses how the domestic and international economic policies might be adjusted to attain a more sustainable pattern of development.

scholarly journals Growth, Distribution, and Crisis: The Workers’ Party Administrations

2019 ◽  
Vol 47 (1) ◽  
pp. 65-82
Author(s):  
Pedro Cezar Dutra Fonseca ◽  
Marcelo Arend ◽  
Glaison Augusto Guerrero
Keyword(s):  
Gross Domestic Product ◽  
Income Redistribution ◽  
Balance Of Payments ◽  
Financial Capital ◽  
Fiscal Policies ◽  
Economic Policies ◽  
Technological Paradigm ◽  
Social Pact ◽  
Growth Distribution

The economic policies of the governments of Lula da Silva (2003–2010) and Dilma Rousseff (2011–2016) combined orthodox measures with distinctive pro-growth measures that, although they deviated from neoliberalism, cannot be called “developmentalist” either. They lacked a long-term strategy for reversing the deindustrialization of the country or advancing to a new technological paradigm. They did, however, have a historical commitment to income redistribution that was largely implemented. The broad social pact proposed by Lula acknowledged the hegemony of financial capital, and its contradiction was that it protected the hegemonic group by means of monetary and fiscal policies that required growth in the gross domestic product, a favorable balance of payments, and a gap between wages and productivity. When these conditions no longer held, Rousseff responded to the crisis with a “new macroeconomic matrix” that amounted to the abandonment of Lula’s class-coalition pact. As políticas econômicas dos governos de Lula da Silva (2003–2010) e Dilma Rousseff (2011–2016) combinaram medidas ortodoxas com distintas medidas pró-crescimento que, embora se desviassem do neoliberalismo, também não podem ser chamadas de “desenvolvimentalista.” Eles careceram de uma estratégia de longo prazo para reverter a desindustrialização do país e avançar para um novo paradigma tecnológico. Eles tinham, no entanto, um compromisso histórico com a redistribuição de renda que foi implementada em grande parte. O amplo pacto social proposto por Lula reconheceu a hegemonia do capital financeiro, e sua contradição foi que protegia o grupo hegemônico por meio de políticas monetárias e fiscais que exigiam crescimento do produto interno bruto, uma balança de pagamentos favorável e uma lacuna entre salários e produtividade. Quando essas condições não mais se mantiveram, Rousseff respondeu à crise com uma “nova matriz macroeconômica” que resultou no abandono do pacto de coalizão de classes de Lula.

Rational Expectations and Inflation

2017 ◽  
Author(s):  
Thomas J. Sargent
Keyword(s):  
World War I ◽  
French Revolution ◽  
Rational Expectations ◽  
Ronald Reagan ◽  
Fiscal Policies ◽  
Economic Policies ◽  
Budget Deficits ◽  
Nobel Lecture ◽  
Economic Decisions ◽  
The French Revolution

This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which the author was awarded the 2011 Nobel Prize in economics. Rational expectations theory is based on the simple premise that people will use all the information available to them in making economic decisions, yet applying the theory to macroeconomics and econometrics is technically demanding. This book engages with practical problems in economics in a less formal, noneconometric way, demonstrating how rational expectations can satisfactorily interpret a range of historical and contemporary events. It focuses on periods of actual or threatened depreciation in the value of a nation's currency. Drawing on historical attempts to counter inflation, from the French Revolution and the aftermath of World War I to the economic policies of Margaret Thatcher and Ronald Reagan, the book finds that there is no purely monetary cure for inflation; rather, monetary and fiscal policies must be coordinated. This fully expanded edition includes the author's 2011 Nobel lecture, “United States Then, Europe Now.” It also features new articles on the macroeconomics of the French Revolution and government budget deficits.

scholarly journals The Fiscal Compact and the European Constitutions: ‘Europe Speaking German’

2012 ◽  
Vol 8 (1) ◽  
pp. 1-7 ◽  
Author(s):  
LB ◽  
JHR
Keyword(s):  
European Union ◽  
Czech Republic ◽  
Monetary Union ◽  
Euro Area ◽  
Economic And Monetary Union ◽  
Economic Policies ◽  
The European Union ◽  
The Czech Republic ◽  
The United Kingdom ◽  
Fiscal Compact

In between the writing of this editorial and the publication of this issue of EuConst, the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, in everyday parlance the ‘Fiscal Compact’, will have been signed by the representatives of the governments of the contracting parties — the member states of the European Union minus the United Kingdom and the Czech Republic. The Fiscal Compact is intended to foster budgetary discipline, to strengthen the coordination of economic policies and to improve the governance of the euro area.

Cooperative Monetary and Fiscal Policies in the Euro Area

2018 ◽  
Vol 85 (1) ◽  
pp. 217-234 ◽  
Author(s):  
Willi Semmler ◽  
Alexander Haider
Keyword(s):  
Euro Area ◽  
Fiscal Policies

scholarly journals International Trade and Economic Misery in African Countries with Low Human Development

2021 ◽  
Vol 2 (4) ◽  
pp. 212-243
Author(s):  
Uchechukwu C. Nwogwugwu ◽  
Collins C. Umeghalu
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Trade Agreements ◽  
Balance Of Payments ◽  
Total Export ◽  
Manufacture Export ◽  
African Countries ◽  
Gdp Growth Rate ◽  
Per Capita

Puzzled by the demeaning level of poverty most African countries continue to grapple with despite their extensive participation in international trade, the study attempts to examine the encumbrances that tend to impede African countries from optimally reaping the developmental gains inherent in partaking in international trade, which seems to also worsen the economic misery the inhabitants endlessly contend with. The System Generalized Method of Moments (System-GMM) estimation technique was used in the study which involves 17 African countries and spans from 1995 - 2018. While misery index is used to measure economic misery, the impact of international trade on economic misery is captured by means of its effect via economic misery, economic growth rate, balance of payment, total export, manufacture export and exchange rate. The results of the study reveal that balance of payments, total export, manufacture export, per capita GDP growth rate, exchange rate and lagged form of economic misery all have positive effect on economic misery. While the effects of total export, manufacture export, per capita GDP growth rate, and exchange rate on economic misery are significant, those of balance of payments and lagged form of economic misery are insignificant. While the study recommends that international trade be engaged strategically such that it results in favourable balance of payments, it also encourages the discarding of obsolete trade policies such as outright bans on importation of certain commodities. Bilateral trade agreements are recommended over multilateral trade agreements, since they are more mutually beneficial and binding on the parties involved

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