Heterodox vs Orthodox economics n n n NONORTHODOX
- Slides: 10
Heterodox vs Orthodox economics n n n NON-ORTHODOX PARADIGM HETERODOX PARADIGM POST-CLASSICAL PARADIGM n RADICAL POLITICAL ECONOMY n REVIVAL OF POLITICAL ECONOMY n ORTHODOX PARADIGM n DOMINANT PARADIGM n THE MAINSTREAM n NEOCLASSICAL ECONOMICS
HETERODOX PARADIGM n POST KEYNESIANS (Fundamentalist Keynesians) MONEY, UNCERTAINTY n KALECKIANS n SRAFFIANS n INSTITUTIONALISTS INSTITUTIONS n EVOLUTIONARISTS TECHNICAL CHANGE n SOCIAL, HUMANISTIC SOCIO. , PSYCHO n STRUCTURALISTS DEVELOPMENT n MARXISTS ¨ MARXIANS ¨ RADICALS ¨ REGULATION, SSA DAS KAPITAL EXPLOITATION, CYCLES GRAND SCHEMES DISTRIBUTION, GROWTH PRICES, SURPLUS
Heterodox schools and founders n POST KEYNESIANS Weintraub, Davidson, Minsky n KALECKIANS Kalecki, Robinson, Kaldor, n SRAFFIANS Sraffa, Pasinetti, Garegnani n INSTITUTIONALISTS Veblen, Galbraith n EVOLUTIONARISTS Schumpeter n SOCIAL ECONOMICS Mark Lutz n STRUCTURALISTS Lance Taylor n MARXISTS ¨ MARXIANS ¨ RADICALS ¨ REGULATION SCHOOL Sherman, Marglin Boyer, Bowles and Weisskopf
Current leaders Post Keynesians: Davidson, Chick n Kaleckians: Sawyer, Fazzari, Bhaduri n Sraffians: Kurz, Nell n Institutionalists: Fred Lee n Kaldorians: Godley, Thirlwall, Dutt n ¨ Ecclectic authors go accross all or at least two of the categories
INFLUENCES ON WYNNE GODLEY OXFORD Roy Harrod Foreign trade multiplier OXFORD P. W. S. ANDREWS HALL (& HITCH) Costing, Pricing CAMBRIDGE Nicholas KALDOR Monetary economics Regional policies Open economy Disequilibrium Wynne GODLEY CAMBRIDGE ECONOMIC POLICY GROUP 1970 s Coutts, Godley, Nordhaus «Industrial pricing» 1978 GODLEY AND CRIPPS «Macroeconomics» 1982 LEVY INSTITUTE, 1990 s CERF, 2000 s Forecasting SFC models James TOBIN Porfolio theory Adding-up constraints Stock-flow coherence Augusto GRAZIANI Monetary circuit theory
PRESUPPOSITIONS OF THE TWO OVERALL PARADIGMS Presupposition Epistemology Ontology Rationality Core Policy PARADIGM HETERODOXY Realism Holism Reasonable Production, growth State intervention ORTHODOXY Instrumentalism Individualism Hyper Exchange, scarcity Free markets
ESSENTIAL POST-KEYNESIAN FEATURES n The principle of effective demand ¨ n Both in the short and in the long run The importance and irreversibility of time Historical time ¨ Dynamics, the traverse ¨
AUXILIARY POST-KEYNESIAN FEATURES Fundamental uncertainty n A Production monetary economy n Alternative microeconomics n Possible detrimental effects of price flexibility n Pluralism of methods and theories n
New Keynesians vs Post-Keynesians n n There are three kinds of New Keynesians First kind: based on nominal rigidies (Blinder); policies are little different from those of New classicals Second kind: based on asymetric information and real rigidities (Stiglitz): short-run only? Third kind: based on coordination problems, with multiple equilibria and auto-prophetic expectations (Grandmont); closest to pke despite general eq. approach.
