The general theory of transformational growth: Keynes after Sraffa
Gespeichert in:
Beteilige Person: | |
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Format: | Buch |
Sprache: | Englisch |
Veröffentlicht: |
Cambridge [u.a.]
Cambridge Univ. Press
1998
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Ausgabe: | 1. publ. |
Schlagwörter: | |
Links: | http://www.loc.gov/catdir/description/cam029/98024700.html http://www.loc.gov/catdir/toc/cam026/98024700.html http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=008327915&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
Umfang: | XXVIII, 784 S. graph. Darst. |
ISBN: | 052159006X |
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adam_text | The general theory of
transformational growth
Keynes after Sraffa
EDWARD J NELL
The New School for Social Research
CAMBRIDGE
UNIVERSITY PRESS
CONTENTS
Extended table of contents page ix
Preface xxi
Acknowledgments xxvii
Part I History or equilibrium? 1
1 The idea of Transformational Growth 3
2 The stylized facts of the old business cycle and the new 37
Part II Method and approach: the active mind 71
3 Conceptual truths and empirical observations 75
4 Rationality, structure, and behavior 106
Part m Money and the Golden Rule 149
5 Circulation and production: the need for money 152
Appendix: Recent theories of circulation 206
6 Circulation and instability: the supply of money 216
Part IV The wage-profit trade-off 289
7 The Classical system: the Golden Rule, labor,
and the wage-profit trade-off 292
Appendix: A numerical example 351
8 The Classical system: gravitation and market adjustment 360
9 Cycles and growth: market adjustment in Craft conditions 410
Part V Investment and Mass Production 465
10 Demand growth, pricing, and investment plans 467
11 Inflation, employment, and market adjustment
in Mass Production 545
Appendix: Stability of the modes of operation 602
Part VI Money and fluctuations in the modern economy 611
12 Money and interest in the Keynesian system 613
13 Growth and cycles: financially constrained instability
under Mass Production 654
vn
viii Contents
Conclusions 715
14 Keynesian themes on Classical grounds 717
Bibliography 747
Index 766
EXTENDED TABLE OF CONTENTS
Preface page xxi
Acknowledgments xxvii
Part I History or equilibrium? 1
1 The idea of Transformational Growth 3
The nature of markets • 5
From natural order to progress 9
The condition of natural order 10
The condition of regular progress 11
Defining Transformational Growth 12
The double nature of Transformational Growth 19
Stages in transformational development 20
The period of early industry: artisan shops,
traditional agriculture (AS/TA) 22
Craft-based factories and mechanized agriculture
(CBF/MA) 24
Mass Production and corporate agriculture (MP/CA) 26
Computerized production and bio-tech agriculture
(CP/BA) 28
The behavior of markets: stylized facts in each era 29
Two patterns of growth 30
Implications for economic theory 34
Conclusions 36
2 The stylized facts of the old business cycle and the new 37
Stylized facts 39
The old trade cycle 41
Prices and money wages 41
Employment, output, and real wages 42
Productivity and output 43
Money and interest 44
Business organization, finance, and the state 45
World trade and investment 46
The character of the cycle 46
The new trade cycle 47
ix
Contents
Prices amd money wages
Employment, output, and real wages
Productivity and output
Money and interest
Business organization, finance, and the state
World trade and investment
The character of the cycle
Summary
Structural differences
Price versus quantity adjustments
Market adjustment in the pre-World War I era
Market adjustment in the post-World War II era
Changes in technology
Some implications for current debates
Contemporary schools of thought
The New Keynesians
The New Classicals
The post-Keynesians
The neo-Ricardians
The cyclical amplitudes debates
Conclusions
Part II Method and approach: the active mind
3 Conceptual truths and empirical observations
Introduction
Methodology and falsification
Approaches to falsification
Method, individuals, and wholes
The critique of the Principle of Falsification
PF as a prescription
Summing up
Conceptual analysis and method
The pragmatist s reply
Conceptual truths in economics
Interpreting conceptual truths
Conceptual truths and armchair empiricism
Method in economics
Fieldwork
Conclusions
4 Rationality, structure, and behavior
Fieldwork
Individuals and institutions
Contents xi
Fieldwork and structure: the context of behavior 110
Fieldwork and behavior 112
Modeling behavior and structure 113
Model-building 113
Stimulus-response models 115
Models of structure 119
A comparison of Neo-classical behavioral and
Classical structural models 121
The dependence of behavior on structure 124
Types of models 126
The nature and function of the market 131
Uncertainty 135
Expectations 138
Against equilibrium 141
Transformational Growth 144
Part HI Money and the Golden Rule 149
5 Circulation and production: the need for money 152
Basic concepts 152
The functions of money 154
Money and credit 159
Competition and innovation 160
Patterns of circulation 162
Pre-capitalist circulation 163
Partial circulation: the exchange circuit 163
Interdependence and production 166
Elementary complete circulation:
the two-sector no-surplus production economy 169
Price equations 170
Quantity equations 171
The circuit of money in the no-surplus economy 173
Fully developed, complete circulation:
the Mercantilist circuit 178
The emergence of a surplus 179
Primitive duality: the late feudal system 182
Developed duality: Mercantilism 183
The circulation of surplus value 185
Merchant earnings 187
Capitalist circulation I: profits and growth 188
The capitalist production circuit 188
Equations 189
The Golden Rule 193
xii Contents
The circuit of profits 194
Variations: banking and services 197
Capitalist circulation II: the modern economy 198
The circulation of fixed capital 199
Money, capital, and the sinking fund 201
Continuous production and circulation 203
Conclusions 205
Appendix: Recent theories of circulation 206
6 Circulation and instability: the supply of money 216
The quantity and value of money 217
Pre-capitalist conditions 217
Costs of a metallic monetary system in primitive
conditions 218
Late feudalism: the primitive dual 219
Mercantilism: the developed dual 221
The evolution of capitalist money 221
Money 222
Metallic money for the capitalist circuit 223
Paper money 223
Bank deposits 227
The pattern of circulation 228
The real money wage and the fiat money wage 229
The required quantity of money 232
The value of money 233
Banking and changes in distribution 235
Additional remarks 236
Digression: distribution and the quantity theory 238
An implication of the theory of monetary circulation 241
The potential for instability 246
Hoarding and instability on the exchange circuit 247
Hoarding and regime instability 249
The role of the Mint 252
Metallic currency: export adjustment 253
Metallic currency: specie-flow and balance of payments 255
Paper instability 257
Banking and the Central Bank 259
Digression: a New Monetary Economics? 261
Financial markets and the financial circuit 263
Financial markets 263
The financial circuit 263
Speculation and growth stocks 264
Funds for production, funds for finance 266
Contents xiii
Capital arbitrage and the Extended Golden Rule 266
Stability and monetary growth 268
Rates of profit, growth, and interest in Craft economies 270
Rates of growth and rates of interest in Mass Production 271
Unbalanced growth 275
A table of capital arbitrage relationships 278
Implications of the Extended Golden Rule for
the monetary system 279
Empirical issues and policy 281
Conclusion: the significance of circulation analysis 283
Part IV The wage-profit trade-off 289
7 The Classical system: The Golden Rule, labor, and
the wage-profit trade-off 292
Wages and labor 293
Alternative concepts of the wage 293
Heterogeneous labor 295
Attempts to define the Quantity of Labor 297
Defining the wage as a ratio 300
Competition and net pay 302
Duality, the Golden Rule, and the wage-profit trade-off 304
The system 305
The wage bill in capital goods, in relation to capital
requirements in consumer goods 307
Technical progress 308
The wage rate and the profit rate 315
The maximum rate of profit and the corresponding
rate of growth 317
Constructing the trade-off 325
Extension to fixed capital 329
Issues and implications 337
The uniform system when production speeds
change nonuniformly 338
Relation to the market 339
Productivity versus change of technique 341
Wages and consumption, profits and growth 342
Relation to macroeconomics 345
Relation to the Theory of Circulation 347
Significance 349
Appendix: A numerical example 351
8 The Classical system: gravitation and market adjustment 360
Normal prices 361
xiv Contents
The topic of gravitation 361
Lifting the veil of barter 363
Observing normal prices 364
Price formation 366
Investment, the rate of interest, and the rate of profit 368
Gravitation and price flexibility 371
Convergence 372
An intuitive account of convergence 374
A formal model of gravitation 375
Extending the approach 380
Gravitation and historical conditions 381
Gravitation and Classical price mechanisms 381
Implications 382
The cross-dual model and Craft conditions 383
Convergence in early capitalist economies 389
The Classical equations and Mass Production 391
Keynesian investment and long-period positions 391
Benchmark prices 394
Technical change and the Classical equations 395
Choice of technique 397
Understanding the Classical equations in a modern
economy 402
Method 408
9 Cycles and growth: market adjustment in Craft conditions 410
Trends and transitions 410
Innovation: Craft to Mass Production 414
The early cycle and the Craft economy 416
Growth and the labor market in early Craft conditions 418
A special case: r=w 421
Market adjustments of the real money wage 422
The price level 427
Machinery and the Golden Rule 427
The General Law of Capitalist Accumulation - revised 429
Marshallian adjustment 431
The advantages of flexibility 431
The optimal size of the firm 433
Finance and savings in the Craft-factory economy 435
The marginal efficiency of capital schedule 436
Shifting the marginal efficiency curve in the short run 438
Construction of demand and supply curves 440
Household spending 441
A shift in saving 442
Contents xv
Responses of production 442
A shift in production at the margin 445
Aggregate employment and marginal productivity 449
The Marshallian production function 449
Craft-like technology 451
Cost curves 453
Productivity 458
Notes on the cycle 458
Conclusion 459
Conclusion: the pressures for change 459
Part V Investment and Mass Production 465
10 Demand growth, pricing, and investment plans 467
Growth and demand 468
Demand and prices 468
Normal growth 476
Growth of demand scenarios 479
Normal growth: explaining the trend 482
An objection: capacity utilization rates can differ 485
Why capacity utilization rates differ 487
A complication: the Harrod problem 490
Digression: further objections 492
Optimal size and output elasticity 493
Benchmark pricing and normal growth 495
Balancing net revenue and required revenue 499
Borrowing 503
Determining the benchmark price 505
Benchmark prices and market conditions 508
Competitive strategy 508
The customer attraction function 509
Competing for customers 511
Price stability when demand varies 513
Price increases 514
The customer attraction matrix 515
The instability of perfect competition 516
Investment in consumer loyalty 517
A classification of markets 519
Financial competition and product differentiation 520
Investment and entry 522
Rising supply price 525
Pricing in administered markets 527
Corporate pricing and investment decisions 527
xvi Contents
Established and new markets 527
The supply of finance for growth 531
External finance 534
Growth and sales investment 534
Choice of technique 536
Impact of exchange rate changes 537
Temporary or cyclical variations in demand 539
Product cycles 541
Conclusions 542
11 Inflation, employment, and market adjustment in
Mass Production 545
Demand equilibrium in Mass Production 545
Demand and quantity constraints 548
Are there effective aggregate constraints? 549
Shortages and demand 551
Demand pressure and market adjustment 552
The elasticity of consumption with respect to investment 553
Adjustment in the simple case: alternative theories 556
Multiplier analysis of employment 560
The multiplier and the elasticity of consumption 562
Expenditure and the terms of participation 564
Investment and capacity utilization 568
A tendency to overbuild 568
Reorganizational investment 570
Investment decisions and investment spending 571
Investment functions 572
Labor and productivity 573
The labor market 573
Mass Production and productivity bargaining over
money wages 575
Cutting money wages 576
Downsizing and productivity changes: blue- and
white-collar labor 577
Inflation 580
Low-level inflation and productivity bargaining 580
Burden-shifting inflation 582
Inflation and unemployment 585
Technology and social organization: capitalism and
socialism 587
Incentives and the mode of operation 587
Modes of operation 590
Contents xvii
Characteristic incentive patterns 590
Multiplier analysis 594
Relation to the warranted rate of growth 599
Implications 600
Conclusions 601
Appendix: Stability of the modes of operation 602
Part VI Money and fluctuations in the modern economy 611
12 Money and interest in the Keynesian system 613
The later Craft-based economy: Keynes on Marshallian
foundations 614
Marginal productivity in an economy with slowly
adjusting employment 615
Effective demand and the elasticity of employment 616
Digression: a critique of Keynes s aggregate demand
and supply 618
A Keynesian model 621
Equations 622
Solutions 625
An example 626
Unemployment and money wages 627
Profit adjustments: intuitive dynamics 628
The question of labor supply 630
The Classical dichotomy 631
Conclusions 633
Investment and production in the neo-Classical synthesis 634
Traditional macroeconomic theory 635
Marginal productivity theory 639
A simple diagram 640
Revising the A, B, C model 641
An inconsistency 642
The rate of profit and the rate of interest 644
Alternative approaches to the problem 645
Toward a new approach 650
Afterword: the New Keynesians 652
13 Growth and cycles: financially constrained instability
under Mass Production 654
The changing character of the business cycles -655
Expectations and confidence 656
Procyclical movements 657
Changes in the status positions of decision-makers 658
xviii Contents
Circulation and financial markets
Components of a model of the new business cycle
Investment: decisions versus spending
Investment: increasing risk
The rate of growth and the rate of interest
Investment: money and the banking system
The fragility of financial institutions
Inflation
Interest rates and growth: two regimes
The cycle in a Mass Production economy
The basic pattern of the cycle
Shift factors affecting the rE and IF
Phases of the cycle
Remarks
The role of financial markets
The cycle in the two regimes
Interaction between i and g
The shape of the cycle
The instability of i = g
Globalization and stagnation
The new world order
The effects of free trade
The austerity dilemma
The impact of new production technologies
Implications
Toward the information economy
Countercyclical policies
Policy instruments
Taxes
Deficits
The Golden Rule and a wealth tax
Wages and incomes policies
Controls
Policy approaches
Conclusions
Conclusions
14 Keynesian themes on Classical grounds
Keynes after Sraffa?
Approaches to theory
The Classical system: accumulation and profitability
Institutions
Contents xix
The household and the market 723
The transformation of consumption 725
The transformation of production 729
Hierarchy, ownership, and the family 730
Ownership and control 732
Implications for the family 733
Transformational Growth and the state 734
New responsibilities for the state 737
Stages of Transformational Growth 739
Prospects: the future of the market 743
Effects of externalities 743
Growing dysfunctionality 745
Bibliography 747
Index 764
|
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publisher | Cambridge Univ. Press |
record_format | marc |
spellingShingle | Nell, Edward J. 1935- The general theory of transformational growth Keynes after Sraffa crescita economica - teoria tessin-TR Wirtschaftsentwicklung Keynesian economics Economic development Wirtschaftswachstum (DE-588)4066527-6 gnd Wachstumstheorie (DE-588)4128160-3 gnd Neokeynesianismus (DE-588)4138182-8 gnd |
subject_GND | (DE-588)4066527-6 (DE-588)4128160-3 (DE-588)4138182-8 |
title | The general theory of transformational growth Keynes after Sraffa |
title_auth | The general theory of transformational growth Keynes after Sraffa |
title_exact_search | The general theory of transformational growth Keynes after Sraffa |
title_full | The general theory of transformational growth Keynes after Sraffa Edward J. Nell |
title_fullStr | The general theory of transformational growth Keynes after Sraffa Edward J. Nell |
title_full_unstemmed | The general theory of transformational growth Keynes after Sraffa Edward J. Nell |
title_short | The general theory of transformational growth |
title_sort | the general theory of transformational growth keynes after sraffa |
title_sub | Keynes after Sraffa |
topic | crescita economica - teoria tessin-TR Wirtschaftsentwicklung Keynesian economics Economic development Wirtschaftswachstum (DE-588)4066527-6 gnd Wachstumstheorie (DE-588)4128160-3 gnd Neokeynesianismus (DE-588)4138182-8 gnd |
topic_facet | crescita economica - teoria Wirtschaftsentwicklung Keynesian economics Economic development Wirtschaftswachstum Wachstumstheorie Neokeynesianismus |
url | http://www.loc.gov/catdir/description/cam029/98024700.html http://www.loc.gov/catdir/toc/cam026/98024700.html http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=008327915&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
work_keys_str_mv | AT nelledwardj thegeneraltheoryoftransformationalgrowthkeynesaftersraffa |