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The causes of the recent sovereign debt crisis within the eurozone are examined from the perspective of the peculiar … sovereign debt crisis will only worsen, pushing the eurozone into a possible phase of debt-deflation. …
Persistent link: https://www.econbiz.de/10010612930
iIn light of the growing interest in "new consensus" models, this paper examines Post Keynesian alternatives to the Taylor rule. It identifies two distinctive approaches to Post Keynesian interest rate policy, which we label the activist and the/i parking-it irules. The first approach advocates...
Persistent link: https://www.econbiz.de/10005225561
Post Keynesians advocate two distinct approaches to monetary and interest rate policy. The activist approach sees interest rates moved countercyclically to ensure strong growth and low employment. The parking-it approach, however, favors setting real or nominal rates at specific levels and...
Persistent link: https://www.econbiz.de/10010660683
This article develops a model, based on balance-of-payment identities, of the new international monetary system (Bretton Woods II or BWII). It shows that if some countries engineer current account surpluses by exchange-rate manipulation and foreign-reserve accumulation, the burden of the...
Persistent link: https://www.econbiz.de/10010812112
Finding satisfactory explanations of deviations from uncovered interest rate parity (UIRP) has proved to be a frustrating experience for Neoclassical economists. Studies have focused on the role of risk, but thus far no one has been able to put forward a source thereof that can account for the...
Persistent link: https://www.econbiz.de/10005750133
In this paper, a series of empirical tests are conducted comparing the explanatory power of the neoclassical approach (in particular, purchasing power parity and the monetary model) with that of a long-run exchange rate model based on Post Keynesian premises (the tests use annual data for the...
Persistent link: https://www.econbiz.de/10005233043
past decades, and, in particular, the different paths shown by both countries since their accession to the euro zone. …
Persistent link: https://www.econbiz.de/10009353090
Latin America has a long history of attempts to achieve regional integration, yet success has been modest. This paper contends that this is essentially due not so much to protectionist practices in the various countries, but to the lack of a common currency or, at least, of a tightly managed...
Persistent link: https://www.econbiz.de/10008592548
The neoliberal experiment in Latin America has consumed more than a generation of enormous resources with very little economic results, disastrous social and environmental effects, and a deterioration in democratic legitimacy that will have to be recovered. A necessary, although insufficient,...
Persistent link: https://www.econbiz.de/10008592550
An inflation-augmented Atesoglu monetary policy rule is introduced. The Atesoglu rule is based on an estimate of the neutral rate of interest of Keynes. Actual Fed monetary policy and policy implied by Atesoglu rules are compared. During the 1994:2-2006:4 period, monetary policy suggested by the...
Persistent link: https://www.econbiz.de/10005543587