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Zero lower bound (ZLB) economics : the fallacy of New Keynesian explanations of stagnation
Palley, Thomas I. - 2016 - Revised January 2016
This paper explores zero lower bound (ZLB) economics. The ZLB is widely invoked to explain stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities. The ZLB represents the newest rigidity. Contrary to ZLB economics, not only...
Persistent link: https://www.econbiz.de/10011433395
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Inequality and growth in neo-Kaleckian and Cambridge growth theory
Palley, Thomas I. - 2016 - Revised April 19, 2016
This paper examines the relationship between inequality and growth in the neo-Kaleckian and Cambridge growth models. The paper explores the channels whereby functional and personal income distribution impact growth. The growth - inequality relationship can be negative or positive, depending on...
Persistent link: https://www.econbiz.de/10011477419
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The general theory at 80 : reflections on the history and enduring relevance of Keynes' economics
Palley, Thomas I. - 2017
This paper reflects on the history and enduring relevance of Keynes? economics. Keynes unleashed a devastating critique of classical macroeconomics and introduced a new replacement schema that defines macroeconomics. The success of the Keynesian revolution triggered a counter-revolution that...
Persistent link: https://www.econbiz.de/10011924527
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Recovering Keynesian Phillips curve theory : hysteresis of ideas and the natural rate of unemployment
Palley, Thomas I. - 2018
profession abandoned the Keynesian Phillips curve and adopted Milton Friedman's natural rate of unemployment (NRU) hypothesis …
Persistent link: https://www.econbiz.de/10011926941
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Money, fiscal policy, and interest rates : a critique of modern monetary theory
Palley, Thomas I. - 2013
rate policy recommendation would likely generate instability. At this time of high unemployment, when too many policymakers …
Persistent link: https://www.econbiz.de/10009746988
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The critics of modern money theory (MMT) are right
Palley, Thomas I. - 2014
Eric Tymoigne and Randall Wray's (T&W, 2013) defense of MMT leaves the MMT emperor even more naked than before (excuse the Yogi Berra-ism). The criticism of MMT is not that it has produced nothing new. The criticism is that MMT is a mix of old and new, the old is correct and well understood,...
Persistent link: https://www.econbiz.de/10010349920
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Unemployment and growth : putting unemployment into Post Keynesian growth theory
Palley, Thomas I. - 2018
Post Keynesian (PK) growth models typically fail to model unemployment. That shows up in the absence of any equilibrium … or exploding unemployment rate. The underlying analytical problem is failure to resolve the Harrod (1939) knife edge …
Persistent link: https://www.econbiz.de/10011926923
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The economics of the super-multiplier
Palley, Thomas I. - 2018
shows how labor markets and unemployment can be added into super-multiplier models to provide a comprehensive growth model …
Persistent link: https://www.econbiz.de/10011927111
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A neo-Kaleckian-Goodwin model of capitalist economic growth : monopoly power, managerial pay, labor market conflict, and endogenous technical progress
Palley, Thomas I. - 2012
This paper presents a neo-Kaleckian-Goodwin model of growth and distribution. The key innovation is the introduction of managerial pay. Kaleckian monopoly power determines the functional distribution of income and Goodwin labor bargaining power determines wage bill division. The model helps...
Persistent link: https://www.econbiz.de/10009672475
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Aggregate demand, aggregate supply, and endogenous growth : a synthetic neo-Kaleckian model
Palley, Thomas I. - 2010
whereby unemployment affects investment and growth. The model generates a growth unemployment rate trade-off. A reduced … propensity to save raises growth but it also raises the unemployment rate because of induced technological progress. This … unemployment affects income distribution; introduction of a Phillips curve and inflation effects; and introduction of demand growth …
Persistent link: https://www.econbiz.de/10009306639