This paper investigates the commonly held belief that government spending is normally financed through a combination of taxes and bond sales. The argument is a technical one and requires a detailed analysis of reserve accounting at the central bank. After carefully considering the complexities...

This paper demonstrates that the terms of trade are determined by the equalization of profit rates across international regulating capitals, for socially determined national real wages. This provides a classical/Marxian basis for the explanation of real exchange rates, based on the same...

Hofstede (1980)’s cross-country psychological survey of IBM employees shows that some countries (societies) are systematically more tolerant of uncertainty, while tolerance of uncertainty is shown by Rigotti et al. (2003)’s model to be essential to the growth of “emerging sectors about...

In this paper, we examine the monetary model of the Malawi Kwacha – U S dollar exchange rate during the current floating exchange rate system by applying several recent developments in the econometrics of unit roots and cointegration. Several interesting and important results are found. A...

In this working paper, Lawrence Buron, Robert Haveman, and Owen O'Donnell examine the possible reasons for the underutilization of labor among various segments of the male work force by studying foregone hours, or the gap (in terms of hours) between the amount of time actually worked and...

Our objective in this paper is to re-examine the hypothesis that welfare benefits may be responsi-ble for the observed differences in cross- country unemployment rates and test its validity by using panel data from 19 countries over the 1970-2000 period. For this purpose, we set up a general...

This paper commemorates the centenary of Kalecki's birth through a consideration of how Kalecki's macroeconomic analysis of capitalist economies should be adapted in light of changes in such economies over the fifty years since the major elements of Kalecki's analysis of capitalism were put into...

Central bank independence is a multifaceted institutional design. The financial component has been seldom analysed. This paper intends to set a comprehensive conceptual background for central bank financial independence. Quite often central banks are modelled as robot like maximizers of some...

The study is focused on the first five years of development of well- functioning financial markets that was an important part of economic transition. The Czech experience is used to gain an insight into the complexity of the process of their emergence. Major players on the Czech financial...

Perceptions of money do influence monetary policy, and monetary policy does have an impact on the functioning of the economy. For instance, a high interest rate policy usually entails high levels of bankruptcies and unemployment. Also, given a loss of confidence in the issuing authority...