Contemporary Issues in Heterodox Economics: Implications for Theory and Policy Action

Description

Heterodox economics can provide a more complete and robust explanation of economic realities than orthodox (or mainstream) economics. Contemporary Issues in Heterodox Economics: Implications for Theory and Policy Action argues that this greater explanatory power gives heterodox economics the ability to illuminate appropriate policy for the major crises of our time, as well as proffer the basis for a more rounded, pluralist approach to economic theory. The chapters in this wide-ranging volume address some of the key issues facing the global economy, including the growing disparity of income/wealth between persons and economic areas, environmental degradation, issues associated with employment, and the regularity of economic/financial crises. The authors examine potential policy responses such as modern monetary theory, models of public ownership, and the need to move beyond standard concepts of growth. They also explore the deficiencies of orthodox economics, and contend that a more pluralist approach to economics is required in the public sphere, in academia, and in the classroom in order to help face the challenges of the twenty-first century. This book is invaluable reading for students and scholars across the social sciences who are interested in alternatives to mainstream economic thinking. Cover Half Title Series Information Title Page Copyright Page Table of contents Contributors Foreword Introduction Main themes and objectives Explaining economic imbalances from a heterodox perspective Microeconomic imperfections Macroeconomic imperfections Pluralism, economics education and the effectiveness of policy action The organization of the book Part I: Pluralism, ethics and economic method Part II: Sustainable macroeconomy and structural policies Part III: Money and monetary regimes Part IV: Development issues and the role of public action Part V: Improving pluralism in economics education Part I Pluralism, ethics and economic method 1 Dynamics versus statics: On the nature of heterodox and orthodox economics Introduction Scientific and vulgar economics: The case of Walras and Pareto Debreu – a mathematical ­exercise – or a value theory? The role of general equilibrium in shaping economic policy The false identification of ‘perfect competition’ with real-life competition Perfect stagnation vs. dynamic competition Franklin M. Fisher – the admirable attempt at dynamics Hodgson and Cambridge as the heterodox citadel Pasinetti’s starting point – Keynes’ unaccomplished revolution Dynamics, Goodwin and Schumpeter Robinson and Kaldor on Keynes Hodgson and Lawson on economics and ideology Is there a future for heterodox economics? Notes References 2 The past and the future: The philosophy and history of economics, and the emerging Risk Society Introduction The Risk Society and the idea of science Social power and the history of economic thought The hidden history of Economics Towards a green new deal Conclusion Notes References 3 Hegel, Marx and the economics of inclusion: Towards an economic philosophy for a post-(non-)truth political class Introduction The capitalist narrative from Enlightenment to today The decline of Enlightenment critical thinking in economic science The Hegel/Marx dialectic and pluralism Towards the formation of inclusive economic criteria Conclusion Notes References 4 What Marx and Kalecki/ Post-Keynesians do not share, and why this is not a barrier to their learning from each other to ... Introduction The methodology of orthodoxy and heterodoxy contrasted What might Marx be doing? What are Keynes and the Post-Keynesians (including Modern Monetary Theorists) doing? False Compatibility I – Kalecki and Marx: The period False Compatibility II – Kalecki and Marx: The mark-up False Compatibility III: The value of money Conclusion – So what can Marxists and Post-Keynesians/Modern Monetary Theorists learn from each other? Notes References Part II Sustainable macroeconomy and structural policies 5 Green economics insights for economists: Diversity leads us out of our silos Introduction Destructive economic theory, education and policies The eruption of protest The precondition of diversity The knowledge economy Suggestions for economists, politicians and individuals Conclusion References 6 Value within the resource-based view of the firm: An approach drawing on the temporal single system interpretation of Marx Introduction Contending interpretations of Marx Simultaneous readings The TSSI of Marx The transformation of production values into production prices under the TSSI Individual and social amounts of labour Marx’s transformation of production values into production prices Addressing the unresolved question within RBT Implications of the transformation procedure for a single sphere The relationship between production and sales prices Case 1: All firms sell at . Case 2: All firms sell at one price that differs from . Case 3: Firms sell at individual prices—. A method for measuring the effect of firm-specific and market factors Further discussion Conclusions Notes References 7 The economic imbalances of our days and the heterodox economics alternative Macroeconomic imbalances and the structural transformations of the system The role of structural factors Towards an economy of a “steady state” Stagflation and other highly debated aspects of our economies Introduction The tenuous relation between the Phillips Curve and Keynes’ Theory Can price and wage flexibility ensure full employment? Conclusion Institutional economics, social valuing and democratic planning The institutional economics perspective The psychological contributions of institutional economics (I) Veblen’s Theory of Instincts (II) Commons’ Theory of Reasonable Value and of Negotiational Psychology A psychoanalytic perspective Implications for economic and social issues Implications for economic planning Some relevant issues of democratic planning (I) Social value and reasonable value (II) Instrumental value and cultural relativism Conclusions Acknowledgements Notes References Part III Money and monetary regimes 8 Central banking and income inequality: The impact of monetary policy on income distribution Introduction Definition of inequality Trends and facts of inequality Mainstream, central banker’s and inequality Post-Keynesians and inequality Post-Keynesians interest rates and monetary policy Conclusion References 9 Getting the Financial Crisis wrong: The dead end that is Neoclassical macro modeling Introduction What’s wrong with Neoclassical macro? Macroeconomics and the AHE Conclusion Notes References Part IV Development issues and the role of public action 10 Center and periphery in global value chains: An interpretation based on the pioneers of development Introduction Classical development: Industry as protagonist The new center and periphery division in the context of global value chains Conclusions Acknowledgments Notes References 11 Models of fair public ownership: Lessons from Singapore and Hong Kong Introduction What are public assets? What makes public ownership of them fair? Public ownership of land Public ownership in housing Public companies Public transport: Railways Public transport: Airports Conclusion Acknowledgements Notes References 12 The other side of paradise: The cost of tourism in the Caribbean Introduction Historical background Dependency theory Transnational hotels – nature and impact All-inclusive hotels Labor and employment Exclusion, polarization, marginalization Cruise tourism Cultural assassination Tour operators and wholesalers Recommendations Government policy The private sector – strategies for small hotel entrepreneurs Destination marketing companies Academic institutions and civic society Closing remarks References Part V Improving pluralism in economics education 13 Heterodox Economic Journal Rankings revisited Introduction The Heterodox Journal Quality Score Recent developments in bibliometric journal ranking Comparing HJQS and new bibliometrics Results Conclusion Notes References 14 Institutional practice and the inadequacy of orthodox macroeconomics: A challenge for pluralism? Introduction Pluralism and pedagogy Orthodox macroeconomic principles for a first-year course Three claims based on Institutional Practice Conclusion Notes References 15 Pluralism and heterodox economics Introduction A definition of pluralism Taking methodological pluralism forward Conclusion Notes References 16 Improving pluralism in economics education Introduction Pluralism fundamentals Defining pluralism Pluralist or pluralism? Anything goes? Is pluralism beneficial? Arguments for and against Any evidence of pluralism’s efficacy? And what about assessment? Pluralism: Disciplinary, Multi-Disciplinary, Interdisciplinary, or Trans-Disciplinary? How to improve pluralism Radically reconceptualize economics education Improving pluralism: Sooner or later? Whose responsibility is it to teach alternative views? What can the individual teacher do? Active learning Learning and teaching the UN 17 Sustainable Development Goals Resuscitating courses in the history of economic thought Recognize and welcome a pluralism of gender and identity Renaming economics political economy Conclusion Notes References Index