Standard new Keynesian models assume the functional distribution of income is irrelevant. This stands in contrast to much of the public debate which presumes that a shift in the distribution of income towards workers will boost aggregate demand and employment. Under this latter view, falling wages during a recession can worsen unemployment. In contrast, neoclassical economics often views unempl...

Purpose In the early 1930s, Nicholas Kaldor could be classified as an Austrian economist. The author reconstructs intertwined paths of and Friedrich A. Hayek to disequilibrium economics through theoretical deficiencies exposed by theory capital its consequences on equilibrium analysis. Design/methodology/approach approaches discussion using a historical reconstruction based published unpublishe...

How to determine how much and what produce? This is one of the great unknowns in economics. paper proposes study recipes offered by conventional economics, keynesian Economics, Austrian school questioning use assumptions mathematical tools. In addition, we will analyze concept dynamic efficiency, which provides a contribution debate. The importance analyzing various focuses on highlight that mi...

We consider a multi--sector overlapping generations model with imperfectly competitive firms in the output markets and wage setting trade unions in the labour markets. A coordination problem between firms creates multiple temporary equilibria which are either Walrasian or of the Keynesian unemployment type. There exist many deterministic and stochastic equilibrium cycles fluctuating between Key...

In the economic literature, it is considered that defense expenditure, which characterized as public spending, can negatively affect growth either through crowding out effect of investments within framework Neo-Classical Approach, or positively by increasing aggregate demand Keynesian Approach. Benoit examined relationship between and military spending in developing countries his study 1973 he ...

Abstract This paper is dedicated to the interpretation of Knightian and Keynesian uncertainty as a situation unawareness in which agents lack perfect knowledge possible future states (not just probabilities assigned those states). So far, systematic nuanced debate with relation Knight’s Keynes’ legacy has been largely neglected. The aims fill this gap. It discusses detail how Knight’s, also Sha...

We survey literature comparing in‡ation targeting (IT) and price-level targeting (PT) as macroeconomic stabilisation policies. Our focus is on New Keynesian models and areas that have seen signi…cant developments since Ambler’s (2009) survey: optimal monetary policy; the zero lower bound; …nancial frictions; and transition costs of adopting a PT regime. Ambler’s conclusion that PT improves soci...

Abstract The climate emergency, rising inequality, and pandemic diffusion have raised the question: for what purpose is capitalism fit? Implementing new policies institutions to meet these challenges will require a realignment of political forces on scale similar that achieved by neoliberal ideas over past four decades. We suggest successful paradigm must provide basis dynamic sustainable econo...