> At 01:22 PM 04/02/2000 -0500, Barnet wrote:
> >Perhaps someone could summarize (or supply citations on) current
> >(heterodox) thinking on interest rate determination
> >(in the U.S.).
>
You may wish to consider the following citations on current hetero economics and
interest rates. They are indirectly related to political economy though..
Strange., Susan _Casino capitalism_, Manchester: Manchester University Press;
distributed by St. Martin's Press New York, 1997, pages x, 207. Provides a
commentary on the systemic changes in international money and finance that
occurred in the 1970s and early 1980s. Argues that the debt problems of
developing countries, the slow growth of the world economy in the 1970s and the
recession of the 1980s, problems of instability of the banking system,
uncertainty over oil prices, and precariousness of the international political
situation are the result of mismanagement of the international financial system.
Discusses the evolution of the world economic disorder form 1973 to 1985,
emphasizing the effects of floating exchange rates, and the volatility of
interest rates, the oil price, and markets in general. Surveys various proposed
remedies and reform plans for bringing the system under control. Concludes that
the problem is a global one and proposes that the United States put its own
economic management in order, both
domestically and regarding the management of transactions conducted in U.S.
dollars in the areas of banking, developing country indebtedness, and Western
alliance defense.
Dillard,-D.."Money as an Institution of Capitalism" Wood,-John-Cunningham, ed.
Thorstein Veblen: Critical assessments. Volume 2: Veblen's political economy..
Critical Assessments of Leading Economists series. London and New York:
Routledge, 1993, pages 517-38. Previously published [1987]..
Horowitz,-Steven "Keynes on Capitalism: Reply", Critical-Review; 10(3), Summer
1996, pages 353-72.. Greg Hill's recent article voices the Keynesian complaint
that capitalism produces unemployment because there is no mechanism that
coordinates decisions to save with decisions to invest. But resources that are
not spent on current consumption are either "invested" as bank deposits or
"hoarded" as cash. Deposits are lent out by other banks to investors, who are
informed by interest rates as to the degree of saving for future consumption that
is taking place. And wage/price flexibility, as well as increases in the supply
of cash, can avoid declines in real income and employment caused by increased
cash holdings.
Garrett,-Geoffrey, "Capital Mobility, Trade, and the Domestic Politics of
Economic Policy", International-Organization; 49(4), Autumn 1995, pages
657-87..The conventional wisdom about the domestic political effects of economic
internationalization in recent decades is overdrawn and too simple. Increasing
exposure to trade and capital mobility has not led all countries to pursue the
same types of economic policies. The political power of the left and the strength
of
organized labor still have a marked bearing on macroeconomic policy. Rather than
being constrained by internationalization, the relationship between left-labor
power and fiscal expansions has increased with greater trade and capital
mobility. However, the political left and organized labor have had to pay a price
for these expansions. With greater exposure to world market forces, left-labor
power has
been increasingly associated with lower levels of corporate taxation and with
higher interest rates. Nonetheless, common assertions about the demise of
partisan politics must be reconsidered.
> Guttmann,-Robert. _How credit-money shapes the economy: The United States in a
> global system_. Columbia University Seminar Series. Armonk, N.Y. and London,
> Sharpe, 1994.
> Maitra,-Priyatosh, "Internationalization of Production and Capitalism's
> Dilemma", International-Journal-of-Social-Economics; 20(9), 1993, pages 22-42..
> To be competitive, capitalism must lower the cost of production by lower wage
> costs, lower inflation, lower interest rates, and lower taxes. The welfare
> state has become the greatest hindrance because it supports costly wage rates
> even in a recession with high unemployment. The consequences of a weak welfare
> state, however, are rising unemployment, poverty and crime. But an
> internationally oriented economy does not need to depend on local demand, much
> of which is created by full employment. One solution is for the unemployed to
> become self-employed. Capitalism, over the years, has achieved an unlimited
> capacity to
> produce, improve and diversify output at a declining cost per unit of output,
> but paradoxically has created an increasing problem in marketing its ever
> expanding output. Attempts to explain this.
Garrison,-Roger-W.."Keynesian Splenetics: From Social Philosophy to
Macroeconomics", Critical-Review; 6(4), Fall 1992, pages 471-92..
Underlying the analytical framework of Keynes's "General Theory" is a
comparison of capitalism in terms of risks and consequent rates of interest,
rates of investment, and capital accumulation, and levels of employment and
output. Keynes's social philosophy and corresponding vision of macroeconomic
reality biases his comparison in favor of socialism, or, more precisely, in favor
of "a comprehensive socialization of investment." Recognizing the significant
influence of Keynes's early social philosophy on his subsequent
macroeconomics--which is
firmly established by Allan Meltzer's "different" interpretation of
Keynes--refocuses criticism of Keynes's analytics, provides a basis for assessing
other interpretations of the "General Theory," and helps account for the absence
of reconciliation among the modern recastings of Keynesian macroeconomy.
> Kalecki,-Michal. Money and Real Wages,Collected works of Michal Kalecki. Volume
> 2. Capitalism: Economic dynamics. Edited by Jerzy Osiatynski. Translated by
> Chester Adam Kisiel, Oxford; New York; Toronto and Melbourne: Oxford University
> Press, Clarendon Press, 1991, pages 21-50. Previously published: [1939]..
> Rotheim,-Roy-J.."Marx, Keynes, and the Theory of a Monetary Economy" ,
> Caravale,-G.-A., ed. Marx and modern economic analysis. Volume 2. The future of
> capitalism and the history of thought. Aldershot, U.K. and Brookfield,
> Vt:Elgar, 1991, pages 240-63..
> Steindl,-Josef "Capital Gains in Economic Theory and National Accounting"
> Banca-Nazionale-del-Lavoro-Quarterly-Review; 51(207), December 1998, pages
> 435-49.. This paper discusses the place of capital gains in the Keynes-Kalecki
> paradigm, arming their relevance in the analysis of saving and spending
> decisions. A national accounts scheme is then illustrated, where capital gains
> are explicitly considered. The analysis is then briefly extended to consider
> the links to the theory of inflation, the effects on interest rates and
> stability, the capital gains tax.
> Pollin,-Robert, "Marxian and Post Keynesian Developments in the Sphere of
> Money, Credit and Finance: Building Alternative Perspectives in Monetary
> Macroeconomics" Lippit,-Victor-D., ed. _Radical political economy:
> Explorations in alternative economic analysis_. Armonk, N.Y. and London:
> Sharpe, 1996, pages 205-25..
Sawyer,-Malcolm, "Money, Finance and Interest Rates: Some Post Keynesian
Reflections", Arestis,-Philip, ed. _Essays in honour of Paul Davidson_. Volume
1. _Keynes, money and the open economy_. Cheltenham, U.K. and Lyme, N.H.: Elgar;
distributed by American International Distribution Corporation Williston, Vt.,
1996,
pages 50-67..
Moore,-Basil-J."Marx, Keynes, Kalecki and Kaldor on the Rate of Interest as a
Monetary Phenomenon", Nell,-Edward-J.; Semmler,-Willi, eds. _Nicholas Kaldor and
mainstream economics: Confrontation or convergence?_. New York: St. Martin's
Press, 1991, pages 225-42..
Samuels,-Warren-J.."Beyond Neoclassical Economics: Heterodox Approaches to
Economic Theory: Foreword" Foldvary,-Fred-E., ed. _Beyond neoclassical
economics: Heterodox approaches to economic theory_. Cheltenham, U.K. and Lyme,
N.H.: Elgar; distributed by American International Distribution Corporation
Williston, Vt., 1996, pages x-xix..Lapavitsas,-Costas, "The Banking School and
the Monetary Thought of Karl Marx" , Cambridge-Journal-of-Economics; 18(5),
October 1994, pages 447-61.. Karl Marx's opposition to the quantity theory of
money, the distinction he drew between fiat and credit money, and the emphasis he
laid on money hoard formation all reveal the influence of the Banking School. His
own monetary work, however, provided important theoretical foundations, which the
anti-quantity theory tradition lacked. First, Marx elaborated the close
connection between forms and functions of money. Second, his analysis of
capitalist reproduction provided a model for the continuous redivision of the
money stock into a circulating and a hoarded part. This work supported the claim
that determination runs from prices to money and not vice versa. (c) 1994
Academic Press, Inc.
Panico,-Carlo, "Marx on the Banking Sector and the Interest Rate: Some Notes for
a Discussion", Science-and-Society; 52(3), Fall 1988, pages 310-25..), Fall 1988,
pages 310-25..
Lianos,-Theodore-P.."Marx on the Rate of Interest"
Review-of-Radical-Political-Economics; 19(3), Fall 1987, pages 34-55..
> Spahn,-H.-Peter. "Marx-Schumpeter-Keynes: Drei Fragmente uber Geld, Zins und
> Profit" ("Marx-Schumpeter-Keynes: Three Approaches to Money, Interest, and
> Profit". With English summary). Jahrbucher-fur-Nationalokonomie-und-Statistik;
> 199(3), May 1984, pages 237-55
--
Mine Aysen Doyran
PhD Student
Department of Political Science
SUNY at Albany
Nelson A. Rockefeller College
135 Western Ave.; Milne 102
Albany, NY 12222
