Financialization is a process whereby financial markets, financial institutions, and financial elites gain greater influence over economic policy and economic outcomes. Financialization transforms the functioning of economic systems at both the macro and micro levels. Its principal impacts are...

This paper presents a theory of the backward-bending Phillips curve. There is a minimum unemployment rate of inflation which offers a policy alternative to the non-accelerating inflation rate of unemployment. Nominal wages are downwardly rigid because workers oppose cuts initiated from within...

The conventional wisdom is that high European unemployment is the result of job markets that are rigid and inflexible. This paper presents new empirical evidence that challenges this received wisdom. A major contribution of the paper is that it fully accounts for both micro- and macroeconomic...

It is widely believed that the current economic slowdown will be mild and temporary in nature, the result of a momentary wobble in the stock market. This paper argues that the slowdown stands to be more deep-seated, owing to contradictions in the existing process of aggregate demand generation....

The causal relation between saving and investment has momentous implications for economic policy. If saving causes investment, this lends support for policies of fiscal austerity. Neither the national income accounts nor economic theory can resolve issues of causality. This paper presents a VAR...

Endogenous money is widespread in economic theory. The post-Keynesian contribution is identification of a causal link between bank lending and the money supply. Though driven by macroeconomic concerns, the post-Keynesian debate has reduced to a microeconomic debate over the role of financial...

The current economic crisis offers an historic opportunity for change. The depth of the crisis means there will likely be a policy turn in a Keynesian and even Post Keynesian direction. However, there are profound political, intellectual and sociological obstacles blocking change in underlying...

Financialization is a process whereby financial markets, financial institutions and financial elites gain greater influence over economic policy and economic outcomes. Financialization transforms the functioning of economic system at both the macro and micro levels. Its principal impacts are to...

The financial crisis has been widely interpreted as a Minsky crisis. This paper argues that interpretation is misleading. The processes identified in Minsky's financial instability hypothesis played a critical role in the crisis, but that role was part of a larger economic drama involving the...