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- To: "Post Keynesian Study Group 2"<gf@xxxxxxxxxxxxxxxx>
- Subject: PKSG: Report Spring PKSG Meeting + New Book
- From: "Giuseppe Fontana" <gf@xxxxxxxxxxxxxxxx>
- Date: Thu, 20 May 2004 16:39:19 +0100
1
Dear Colleague,
Please note that this document contains the following four items:
(A) Brief Report of the Spring PKSG Meeting, Downing
College, Cambridge, UK
Friday 14th May 2004.
(B) Programme of the Spring PKSG Meeting.
(C) Abstracts of the Spring PKSG Meeting.
(D) New Book Publication: Discount to PKSG members.
Please note that next planned event is the Summer PKSG
Meeting at the University of Leeds, Friday 17th September
2004. The general topic of the meeting is ?The Future of
Economics?. Speakers include Paul Davidson, Victoria
Chick, John and Wendy Cornwall and Geoff Harcourt.
Finally, please note that travel expenses (apex fares) for PKSG
members and graduate students may be reimbursed. Further
information from: Giuseppe Fontana (gf@xxxxxxxxxxxxxxxx)
Economics Division, Leeds University Business School,
University of Leeds, Leeds LS2 9JT, tel. 0044.113.3434503 or
John McCombie (jslm2@xxxxxxxxx), Cambridge Centre for
Economic and Public Policy, Department of Land Economy,
University of Cambridge, 19 Silver Street, Cambridge CB3 9EP,
UK, tel. 01223.337160.
All the best,
Giuseppe
(On behalf of the PKSG committee)
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(A) Brief Report of the Spring PKSG Meeting
The seminar was attended by 20 participants. Thanks to all of
those who made it and particular thanks to John McCombie,
Michelle Baddeley and Mark Roberts for organising the room
and refreshment at the venue. My thanks to all speakers and
participants for investing their time and own resources for the
good of the discussion. If anyone is interested in receiving a copy
of relevant papers, please email the relevant authors (please see
section C for e-mail address).
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(B) Programme of the Spring PKSG Meeting.
1st SESSION: 14.00 - 15.30
Chairperson: Giuseppe Fontana (LUBS, University of Leeds)
Mark Roberts and John S.L. McCombie (University of
Cambridge)
Effective Demand Constrained Growth in a Two-sector
Kaldorian Model
Mark Hayes (Northumbria University)
The principle of effective demand as the general equilibrium of a
monetary production economy
Ahmad Seyf (Staffordshire University)
Globalisation: What next?
15.30- 16.00 Tea/Coffee/Juice Break
2nd SESSION: 16.00 ? 17.30
Chairperson: Michelle Baddeley (Gonville & Caius College,
Cambridge)
Sheila Dow and Dipak Ghosh (University of Stirling)
Liquidity Preference ? A Fuzzy Concept?
Kobil Ruziev (University of Stirling)
Role of Money in Uzbek Economy: Transition from a Barter
Economy into a Monetary One
Paul Downward (Staffordshire University) and Andrew
Mearman (University
of the West of England)
Triangulation in Economic Research: Reorienting Economics
into Social Science'
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(C) Abstracts of the Spring PKSG Meeting:
1st SESSION
* Mark Roberts (mr10013@xxxxxxxxxxxxxxxx) and John
S.L. McCombie (University of Cambridge)
Effective Demand Constrained Growth in a Two-sector
Kaldorian Model
Abstract
The paper presents a two-sector agriculture-industry model of
economic growth relevant to both individual developing
countries and the world economy as a whole. In doing so, it
analyses the model under two different scenarios. The first
scenario is that of idealised (relative) price adjustment in which
growth is unconstrained by effective demand. This scenario
represents a theoretical benchmark because it assumes that
adjustment occurs in accordance with notional quantities.
Meanwhile, the second is that of quantity adjustment under
conditions of "false" trading at non-market-clearing prices
leading to a situation where industry, not to mention the
economy overall, is constrained in its growth by a lack of
effective demand growth emanating from agriculture. The
model represents both an interpretation and formalisation of the
writings of Nicolas Kaldor (1975, 1976, 1977, 1996).
* Mark Hayes (mark.hayes@xxxxxxxxxxxxxxxxx)
(Northumbria University)
The principle of effective demand as the general equilibrium of a
monetary production economy
Abstract
Keynes?s principle of effective demand extends Marshall?s
method of supply and demand analysis from partial to general
equilibrium, defined as an optimal pattern of hiring decisions by
employers in a given state of expectation, rather than the optimal
allocation of productive capacity. This distinction reflects the
nature of an economy based on wage labour and in which money
is held as a long-term store of value, and corresponds to a realist
rather than idealist concept of equilibrium. Restating Keynes?s
own mathematical model in terms of vector quantities makes
explicit the role of relative prices.
* Ahmad Seyf (Staffordshire University)
Globalisation: What next?
Abstract not available but the paper can be obtained from
the author. (I.Seyf@xxxxxxxxxxxx)
2nd SESSION
* Sheila Dow (s.c.dow@xxxxxxxxxx) and Dipak Ghosh
(dipak.ghosh@xxxxxxxxxx)
(University of Stirling)
Liquidity Preference ? A Fuzzy Concept?
Abstract
This paper argues for the fruitfulness of considering the concept
of uncertainty in Keynesian liquidity preference theory
(particularly as regards the speculative motive) as a fuzzy
concept. In Keynes, each individual agent has his idea of what is
the high (low) interest rate. However, we also find that, in the
economy as a whole, there exists a variety of opinion about what
this high (low) interest rate is. Looking at it from this point of
view, we can see that the uncertainty results from the vagueness
of a linguistic term ?high? (?low?) in natural language.
Traditional probability theory, both subjective as well as
objective, is not capable of dealing with uncertainty when it
manifests from such vagueness of linguistic terms; it is
concerned with the likelihood of the relevant event. Fuzzy set
theory, on the other hand, is not concerned with events at all. It is
concerned with concepts. It is argued that looking at the
Keynesian concept of uncertainty as a fuzzy concept could add to
our understanding.
* Kobil Ruziev (kobil.ruziev@xxxxxxxxxx) (University of
Stirling)
Role of Money in Uzbek Economy: Transition from a Barter
Economy into a Monetary One?
Abstract
Taking Uzbekistan as a case study, this paper attempts to apply
the methodology of the Post Keynesian school of thought to the
economics of transition. Private property rights and uncertainty
are of crucial importance in explaining the emergence of money
and its non-neutrality in the economic process in a market
economy. The organisation of the working of the economy under
central planning did not require the employment of market
money. In other words, soviet money did not have the attributes
of capitalist money. The role of money in centrally planned
economies was passive. Therefore, unlike in capitalist
economies, in centrally planned economies aggregate effective
demand would not fluctuate and thus chronic unemployment
would not result. Taking into account this and other peculiarities
of centrally planned type of economies, the paper suggests that
from a Post Keynesian point of view the soviet economy was
effectively a barter economy, but a highly coordinated one. In
this sense, since Post Keynesians view a capitalist economy as a
monetary economy, the economics of transition implies the
process of transformation from a barter economy into a monetary
one. It seems that with the introduction of private property rights
and decentralisation of the economic process all necessary
conditions for the emergence and successful functioning of
?peculiar? capitalist money have been satisfied in transition
economies. However, the case study under consideration shows
that the Uzbek economy is still far from being labelled as a
monetary economy. The paper also touches upon the issue of
finance and development. Finance facilitates growth. This
argument is taken for granted. Development of the financial
system, then, requires the existence of a sound outside money.
The analysis shows that weak financial intermediation in the
transition economy of Uzbekistan is largely explained by the
absence of a sound outside money.
* Paul Downward (P.M.Downward@xxxxxxxxxxxx)
(Staffordshire University) and Andrew Mearman
(Andrew.Mearman@xxxxxxxxx) (University of the West of
England)
Triangulation in Economic Research: Reorienting Economics
into Social
Science'
Abstract
This paper explores the philosophical foundations of
triangulation in social science research and identifies a role for
triangulation based upon the Post Keynesian and critical realist
literatures. It is argued that key to defining triangulation is the
distinction between inter-disciplinary and multi-disciplinary
analysis. Transcending this difference produces a uniform social
science approach to economics within which Post Keynesian
economics is properly located. In this respect the paper echoes
and consolidates themes recurrent in Tony Lawson's recent book
'Reorienting Economics'
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(D) New Book Publication: 50% Discount to PKSG members
ECONOMISTS IN DISCUSSION
The Correspondence between GLS Shackle and Stephen F
Frowen, 1951-1992
Stephen F Frowen, Palgrave Macmillan
Cost: £65.00 (50% Discount Offer: £32.50 for PKSG members.
Please ask for form to John McCombie (jslm2@xxxxxxxxx).
This volume contains the correspondence between GLS Shackle
and Stephen Frowen from the time Shackle took up his first post-
war academic appointment until his death in 1992. The
correspondence, partly personal and partly professional, reveals a
vital insight into Shackle both as a man and an outstanding
economist and philosopher. His letters illuminate his thoughts on
issues occupying his mind but also show the warmth and
tremendous generosity he felt towards his friends. The centenary
of Shackle's birth in 2003 seems an appropriate time for the
publication of his letters.
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