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Summer School ‚Keynesian Macroeconomics and European Economic Policies’ Research Network Macroeconomics and Macroeconomic Policies Summer School ‚Keynesian Macroeconomics and European Economic Policies’ 27 July – 3 August 2008, Berlin Location: IG Metall Bildungsstätte Berlin-Pichelssee More information on the location (in German only): http://www2.igmetall.de/homepages/bs-berlin/tagungshotel.html Research Network Macroeconomics and Macroeconomic Policies Summer School ‚Keynesian Macroeconomics and European Economic Policies’ 27 July – 3 August 2008, Berlin Post-Keynesian economics is a thriving economic approach which highlights issues of effective demand, income distribution, employment and growth in a monetary production economy. Most of the features of a monetary production economy are usually neglected in mainstream eco- nomics and its “free market”-orientation. During the recent decades, economic policies based on this mainstream approach have contributed to high unemployment, worsening income distribu- tion and increasing economic imbalances. Developing alternative policy proposals will therefore need a firm theoretical foundation. The summer school aims at providing an introduction to Post-Keynesian economics and to the problems of European economic policies as well as present- ing some ongoing research to interested graduate students (MA and PhD) and junior researchers. The summer school will consist of overview lectures, student study groups and academic papers. It will feature leading international researchers in the area, like Marc Lavoie (Canada), Amitava Dutt, James Crotty, David Howell (all USA), and Philip Arestis (UK). Issues of monetary eco- nomics, the theory of growth and distribution, and the relation of Post-Keynesian Economics to other heterodox traditions, but also to the now prevalent New Keynesian approach, will be cov- ered as well as applications of Keynesian theory to issues of unemployment, monetary policy and macroeconomic policy coordination in the EU. Language: English Costs: There is a fee of € 250,- for each participant for accommodation and meals. Travelling costs cannot be covered. Application: Send a letter of motivation (max. 2 pages), your CV and the address of one aca- demic adviser who may be contacted for reference to [email protected] no later than 31 March, 2008. Accepted participants will be informed by the end of April 2008 and will be provided with a reading package for the Summer School. For detailed information and updates on the summer school see: http://www.boeckler.de/cps/rde/xchg/hbs/hs.xsl/33_89470.html For more information contact the local organisers: Eckhard Hein, Macroeconomic Policy Institute (IMK), Hans Boeckler Foundation ([email protected]) Torsten Niechoj, Macroeconomic Policy Institute (IMK), Hans Boeckler Foundation ([email protected]) and Engelbert Stockhammer, Vienna University of Economics and Business Administration ([email protected]) For more information on the Research Network Macroeconomic Policies see: http://www.boeckler.de/cps/rde/xchg/hbs/hs.xsl/36176_36330.html Programme of the Summer School Sunday, 27 July 2008 Monday, 28 July 2008 Tuesday, 29 July 2008 Wednesday, 30 July 2008 Thursday, 31 July 2008 Friday, 1 August 2008 Saturday, 2 August 2008 Money, Credit and Growth and Income Marx, Keynes and Do Labor Market Rigidi- Keynesian Economics Economic Theory and 9.30– Finance Distribution Schumpeter and Global ties Explain the Post- - and the New Keynesian/ Macroeconomic Policies 12.30 Marc Lavoie, University Amitava Dutt, University Neoliberal Capitalism 1970s Pattern of OECD New Consensus Schools in the EMU James Crotty, University Unenmployment? of Thought Philip Arestis, University 12–14.30 of Ottawa of Notre Dame Check in of Massachusetts at Am- David Howell, New Philip Arestis, University of Cambridge herst School University, New of Cambridge York Lunch Lunch Lunch Lunch Lunch Lunch 13–14 Study group on Money, Study group on Distribution Study group on Keynesian, Study group on Labour Study group on Post- Study group on Economic 14– Credit and Finance and Growth Classical and Marxian Eco- Market, Macroeconomic Keynesian Macroeconomics Problems and Macroeco- 16.30 nomics: A Coherent Post- Policies and Unemployment and its New Keynesian/New nomic Policy Coordination 15–19.00 Introduction: History Keynesian Research Pro- Consensus Cousins in the Enlarging EU and Method of Post- gramme? Keynesian Macroeco- nomics Marc Lavoie: A Simple Amitava Dutt: Conspicuous James Crotty: What Does the David Howell: Individual Eckhard Hein, Engelbert Philip Arestis: Assessing UK 17– Marc Lavoie, Univer- Stock-flow Consistent Consumption, Growth and Recent Financial Crisis Tell Incentives and Aggregate Stockhammer: Macroeco- Monetary Policy, Part I & II 19.00 sity of Ottawa Model With Portfolio Distribution Us About the Strengths and Employment Performance: nomic Policy Mix, Employ- Hansjörg Herr: Wages and Choice and a Government Marc Lavoie: Cadrisme Weakness of Competing Unemployment Generosity ment and Inflation in a Post- Economic Coherence in the Sector. Within a Post-Keynesian Theories of Financial Mar- and the Unemployment Rate Keynesian Alternative to the Enlarging EU Peter Spahn: New Keynesian Model of Growth and Dis- kets? Özlem Onaran: Globaliza- New Consensus Model Macroeconomics and Mone- tribution Trevor Evans: Marxian and tion and Labour in the Sebastian Dullien: The New tary Targeting Engelbert Stockhammer: On Post-Keynesian Theories of North, East and South. Consensus from a Post- the Empirics of Distribution Finance and the Business A Political Economy Ap- Keynesian Perspective: Pro- and Growth Cycle proach gress by the Mainstream or a Trojan Horse for New Clas- sical Economics? Dinner Dinner Dinner Dinner Dinner Dinner Dinner 19–20 Wages in Open Economies 20– – The European Disaster 22.00 Heiner Flassbeck, UNCTAD Lecture, study group, academic papers, after dinner lecture Departure: Sunday 4 Sunday, 27 July 2008 History and Method of Post-Keynesian Macroeconomics Lecture INTRODUCTION: HISTORY AND METHOD OF POST-KEYNESIAN MACROECONOMICS Marc Lavoie, University of Ottawa Outline This lecture can be divided into seven themes. 1. We set post-Keynesian economics within a set of multiple heterodox schools of thought, in opposition to mainstream schools. 2. We go over a brief history of post-Keynesian economics, in particular its founding moments. 3. We identify the main features (presuppositions) of heterodoxy, contrasting them to those of orthodoxy. 4. We identify the additional features that characterize post-Keynesian economics relative to closely-related heterodox schools. 5. We delineate the various streams of post-Keynesian economics: Fundamentalism, Kaleckian, Kaldorian, Sraffian, Institutionalist. 6. We attempt to show how modern writers are linked to those various streams and to the “founding fathers”. 7. We go over some of the methodological debates that have rocked post-Keynesian economics over the last ten years. Required Readings Arestis, P. “Post-Keynesian economics: towards coherence”, Cambridge Journal of Economics, January 1996, 20 (11), 111-135. Pasinetti, L.L. “The Cambridge school of Keynesian economics”,Cambridge Journal of Economics, November 2005, 29 (6), 837-848. Lavoie, M. “Do heterodox theories have anything in common? A Post-Keynesian point of view”, Intervention, 2006, 3 (1), 87-112. King, J.E. “Post-Keynesian political economy: history”, in P.A. O’Hara (ed.), Encyclopedia of Political Economy, vol.2, Routlege, 1999, 880-883. Suggested Readings Arestis, P., S.P. Dunn, and M. Sawyer, “Post Keynesian economics and its critics”, Journal of Post Keynesian Economics, Summer 1999, 21 (4), 527-550. Bortis, Heinrich, Institutions, Behaviour and Economic Theory, Cambridge University Press, 1997. Chick, V. “Is there a case for Post Keynesian economics?”, Scottish Journal of Political Economy, February 1995, 42 (1), 20-36. Dow, S.C. “Post Keynesian methodology”, in R.P.F. Holt and S. Pressman (edsd), A New Guide to Post Keynesian Economics, Routledge, 2001, pp. 11-20. Dunn, S.P. “Whither Post Keynesianism?”, Journal of Post Keynesian Economics, Spring 2000, 22 (3), 343- 364. Dutt, A. “On Post Walrasian economics, macroeconomic policy, and heterodox economics”, International Journal of Political Economy, Summer 2003, 33 (2), 47-67. Fontana, G. and B. Gerrard, “The Future of Post Keynesianism”, Banca Nazionale del Lavoro Quarterly Review, Mach 2006, 59 (236), 46-80. Hamouda, O. and G.C. Harcourt, “Post-Keynesianism: From criticism to coherence?”, Bulletin of Economic Research, January 1988, 40 (1), 1-33. 5 Harcourt, G.C., The Structure of Post-Keynesian Economics: The Core Contributions of the Pioneers, Cambridge University Press, 2006. King, John E., A History of Post Keynesian Economics Since 1936, Edward Elgar, 2003. Lavoie, Marc, An Introduction to Post-Keynesian Economics. Palgrave/Macmillan, 2006. Lawson, T. “The nature of Post Keynesianism and its links to other traditions”, Jornal of Post Keynesian Economics, Summer 1994, 16 (4), 503-538. Walters, B. and D. Young, “On the Coherence of Post-Keynesian Economics”, Scottish Journal of Political Economy, August 1997, 44 (3), 329-349. 6 Monday, 28 July 2008 Money, Credit and Finance Lecture MONEY, CREDIT AND FINANCE Marc Lavoie, University of Ottawa Outline This lecture has several objectives. 1. We define the main claims of the post-Keynesian views on money, credit and finance, namely a demand-led money supply, the impossibility of pursuing monetary targets, reversed causality, and multiple natural
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