Keynes’s agenda for monetary reform evolved from an interplay between practical instinct in the face of real world events and the development a theoretical analysis of increasing sophistication and worth. His legacy was a monetary theory of economics and the practical means to the optimal operation of the monetary system of what he once called the ‘world between nations’.
Victoria Chick, Ann Pettifor, Geoff Tily
This paper was first published in July 2010, and revised in February 2011. This new edition (March 2016) includes a preface by the authors to the 2011 paper in which they look at how their analysis has fared in the light of developments since.
Panagiotis Chronis and Vassilis Droucopoulos
Chronis and Droucopoulos contend that it would take an inordinate dose of audacity from someone to maintain that the adjustment programmes imposed on Greece and executed from 2010 onwards are not responsible for the severe economic slump that the country is experiencing.
This paper examines how the notion that Keynes took money as exogenous in the General Theory has proved so durable in the post-Keynesian paradigm. This durability is despite post-Keynesians regarding Keynes as a monetary economist, rejecting the ‘Keynesian’ interpretation and basing their paradigm on the endogeneity of money.
For a century and a half after its defeat in the Napoleonic Wars Spain lay in the shadow of Britain’s Empire and its industrial revolution. Like many other parts of the world, notably East Asia and South America, it was never part of the formal Empire but like them, it was subject to Britain’s hegemonic domination of world trade, finance and investment.
Ann Pettifor & Geoff Tily
As a part of a series of celebratory events held at the college, the King’s Politics Society is hosting two debates inside the chapel. The second of these commemorative debates, which in also is being held in memory of John Maynard Keynes, takes place on Monday 16th November 2015 and is entitled “What are the economic possibilities for our grandchildren?”
The divergences developed between core and periphery within the euro area represent the main threat to the existence of the single currency and to the cohesion and stability of the EU as a whole. Without proper automatic stabilizers, a monetary union can only deliver suboptimal results, and may not even be sustainable.
Almost all necessities are high carbon, while most ‘luxuries’ emit lower than average GHGs. What are the policy implications?
It will not be possible for the rich world to combat climate change, writes Ian Gough in a new PRIME e-publication, without also addressing its consumption.
The euro not only replicated key elements of the gold standard – but went much further: European currencies were simply abolished. States lost control over both their currency and their central bank. These parallels with the operation of the gold standard explain why, like the gold standard, the euro will fail.
W. D. McCausland and I. Theodossiou
April 2015 (Written October 2014)
Reinforcing the case made in the The Economic Consequences of Mr Osborne (2010), this study examines the impact of government stance on public debt for eleven OECD countries, demonstrating that austerity deteriorates rather than enhances the prospects of economic recovery.
In this latest PRIME publication, Geoff Tily argues that parallels between events in Greece today and Germany in the 1920s go much further than commonly understood, and the policy implications are more far-reaching. Economic crisis in both countries originated in financial liberalizations, involving the gold standard in the 1920s and the euro in the 2000s.
Ann Pettifor's speech to a meeting of the Malaysian Securities and Exchange Commission & the Institute of Islamic Studies, Ditchley Park, Oxford, March, 2015.
Pettifor discusses usury, credit, interest rates, and the creation of money and how Keynesian monetary theory and policy could embed a Koranic model of finance.
By László Andor
Raising the banner of investment has been the most important development of 2014 for European policy. Clearly, Europe needs a better economic performance, and without more investment it will not come. Since, however, boosting investment through direct action is a new activity of the European Commission, there is no recipe for success.
Tily argues that Keynes’s goal was high employment founded on a high level of domestic activity. “Growth” was a later and rival preoccupation that must be understood as inherent only to the case for the globalised system that was opposed to both his policies and his goals.
John Grahl and Photis Lysandrou
In 2011, the EC proposed a Financial Transactions Tax to raise revenue from the financial sectors. While they broadly agree with the objectives behind the FTT, Grahl and Lysandrou argue that the approach is too simplistic...
A Financial Activities Tax is needed.
Reading GDP: A Brief But Affectionate History by Diane Coyle (2013) led to the question – when and how did GDP growth become the central focus of policymaking? Younger readers may be more surprised by the answers than older ones, with the details not commonplace in conventional histories of post-war policy.
An appeal to the Bank of England: The ‘rate of interest’ has not been low. Financial liberalisation led to a steep increase the complex of interest rates for all kinds of borrowing, long and short, safe and risky and the most prolonged era of dear money on record.
On the eve of the Autumn Statement, PRIME is pleased to publish “Pain, No Gain: the Austerity Scam” by John Weeks (Emeritus Professor of Economics, SOAS, University of London) which explains just why the deficit is not a problem – indeed is a necessary part of the solution – for the UK economy.
Ann Pettifor and Geoff Tily
In this review, Pettifor and Tily argue that Piketty’s determinism (which suggests that inequality will continue to rise indefinitely and that interest and growth are on a preordained trajectory) arises from a neo-classical approach to interest as the marginal product of capital.
An in-depth critique of how the US courts have interpreted the law and exercised their wide discretion in the disputes between NML and Argentina. Smith proposes that a fair remedy would be to order Argentina to pay NML on the identical basis to the exchange bond-holders.
Douglas Coe and Ann Pettifor
In this paper, Coe and Pettifor analyse two articles by Bank of England authors on Money in the Modern Economy and discuss the implications for economic theory and practical policies; and for the economics profession.
A look at how our economy has fallen back over 6 years, how the labour market has evolved, and how traditional ‘productivity’ analysis provides flawed measures of performance of a national economy with high-level unemployment.
In this review essay of Geoffrey Ingham’s book Capitalism, Ann Pettifor stresses the need to understand the elastic production of money under capitalism and to move beyond the legacy of Adam Smith and ‘fractional reserve banking.’
Ann Pettifor and Douglas Coe
In Tokyo this year, IMF economists destroyed the case for austerity. These IMF conclusions are of the greatest possible importance and must not be allowed to be lost with the passage of time. This PRIME briefing sets out the issues.
Ann Pettifor and Jeremy Smith September 2012
In this PRIME Position Paper, Ann Pettifor and Jeremy Smith record why – on economic as well as environmental grounds – they remain strongly against the Heathrow extension, and against building any new major airport in the London and south-east region.
Weeks critiques the government’s “deficit disorder” approach to economic recovery and argues that prioritising deficit reduction is unfounded. A policy reversal based on fiscal stimulus, public borrowing and personal income tax increases is needed.
Victoria Chick & Ann Pettifor, with G Tily
July 2010, updated February 2011
Fiscal consolidation does not ‘slash’ the debt, but contributes to it. As the extent of economic recovery becomes increasingly uncertain Prof. Chick and Pettifor examine a century’s worth of macroeconomic evidence to argue that contrary to conventional wisdom we need to ‘spend away the debt’.
Ann Pettifor & Douglas Coe
This analysis was co-authored by Douglas Coe and Ann Pettifor and published by the New Economics Foundation under the title, “The cuts won’t work: Why spending on a Green New Deal will reduce the public debt, cut carbon emissions, increase energy security and reduce fuel poverty.”