by
Ann Pettifor
131
Subordinating Finance, Restoring Democracy
2
terms
3
notes
131
Socialism is, essentially, the tendency inherent in an industrial civilization to transcend the self-regulating market by consciously subordinating it to democratic society.
in The Great Transformation
Socialism is, essentially, the tendency inherent in an industrial civilization to transcend the self-regulating market by consciously subordinating it to democratic society.
in The Great Transformation
136
Keynes’s great contribution to monetary theory, and to the policies of his time, was based on his refutation of an important element of classical economic theory. He argued that the rate of interest was the cause, not as orthodox economists argued the passive consequence, of the level of economic activity. In other words, the level of investment, employment, and trade was caused by the rate of interest. If the rate was too high, the level of investment, employment and trade would fall. If it was low, the level of investment, employment and trade would rise.
Keynes’s great contribution to monetary theory, and to the policies of his time, was based on his refutation of an important element of classical economic theory. He argued that the rate of interest was the cause, not as orthodox economists argued the passive consequence, of the level of economic activity. In other words, the level of investment, employment, and trade was caused by the rate of interest. If the rate was too high, the level of investment, employment and trade would fall. If it was low, the level of investment, employment and trade would rise.
144
Somewhat belatedly, the IMF in 2016 echoed the views of Professors Rey and Bhagwati outlined above, and issued a partial mea culpa in a paper titled ‘Neoliberalism: Oversold?’ [...]
[...]
None of this is news to the victims of neoliberal economic policies in many poor, heavily indebted countries, but the IMF’s mea culpa rattled the cages of many a neoliberal academic and media institution. This included the venerable Financial Times whose economic staff attacked the IMF and ‘its misplaced mea culpa for neoliberalism’, declaring that by far the most important ‘global economic issue is the persistent decline in productivity growth’. Ironic, given that many economists regarded the decline in productivity growth as a direct consequence of mobile capital eschewing investment in productive activity in favour of speculation in volatile financial assets. A state of affairs made possible thanks to neoliberal economic policies.
basically they said neoliberalism creates inequality which hurts growth
Somewhat belatedly, the IMF in 2016 echoed the views of Professors Rey and Bhagwati outlined above, and issued a partial mea culpa in a paper titled ‘Neoliberalism: Oversold?’ [...]
[...]
None of this is news to the victims of neoliberal economic policies in many poor, heavily indebted countries, but the IMF’s mea culpa rattled the cages of many a neoliberal academic and media institution. This included the venerable Financial Times whose economic staff attacked the IMF and ‘its misplaced mea culpa for neoliberalism’, declaring that by far the most important ‘global economic issue is the persistent decline in productivity growth’. Ironic, given that many economists regarded the decline in productivity growth as a direct consequence of mobile capital eschewing investment in productive activity in favour of speculation in volatile financial assets. A state of affairs made possible thanks to neoliberal economic policies.
basically they said neoliberalism creates inequality which hurts growth
Tobin tax
(en)
a proposed tax on international financial transactions, especially speculative currency exchange transactions; suggested by Nobel Memorial Prize in Economic Sciences Laureate economist James Tobin
146
Capital controls are taxes, and differ from exchange controls. The latter place limits on the amount of a nation’s currency that can be taken abroad. Instead, the financial transaction tax or Tobin tax is a form of capital control, a tax on and ‘sand in the wheels’ of capital flows.
idk if she adequately clarified the diff tbh (seems like it's a case of limits vs taxes, which is not what the italicizing implies)
notable
7 years, 2 months ago
Capital controls are taxes, and differ from exchange controls. The latter place limits on the amount of a nation’s currency that can be taken abroad. Instead, the financial transaction tax or Tobin tax is a form of capital control, a tax on and ‘sand in the wheels’ of capital flows.
idk if she adequately clarified the diff tbh (seems like it's a case of limits vs taxes, which is not what the italicizing implies)
notable
7 years, 2 months ago
bancor
(en)
a supranational currency imagined by Keynes between 1940–1942 and which the UK proposed to introduce after WWII; it could then be used in international trade as a unit of account within a multilateral clearing system—the International Clearing Union—which would also have to be founded
150
The key role played by this new international central bank – the ICU – would be to manage flows of money between states, and to use a new currency, bancor, as the relevant currency. (In other words, a neutral currency, not the currency of one imperial power.)
notable
7 years, 2 months ago
The key role played by this new international central bank – the ICU – would be to manage flows of money between states, and to use a new currency, bancor, as the relevant currency. (In other words, a neutral currency, not the currency of one imperial power.)
notable
7 years, 2 months ago