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  Money, Financial Instability and Stabilization Policy

Edited by L. Randall Wray and Mathew Forstater

     This volume presents the latest research into money, financial markets, and financial stability—areas that have long been of interest to Post Keynesians and to which they have made significant contributions.
     The papers were presented at the 8th International Post Keynesian Workshop in 2004 and illustrate the broad scope of Post Keynesian interests and research. Topics include: the evolution of the international financial system since the breakdown of Bretton Woods; the deficiencies of macroeconomic models in their treatment of money and the role of government; a critique of the standard policy of raising interest rates to contain inflation; the ‘confidence’ strategy versus the ‘credibility’ strategy of post-war monetary policy; the links between Post Keynesian research and the original Institutional economics associated with Veblen; today’s capitalist economy as a financial bubble, where much of savings and debt is used to purchase financial assets rather than invest in productive capacity; the existence of unit roots as supportive of Keynesian theory; the oligopsonistic power possessed by Mexican commercial banks in their domestic-deposit market; a critique of the Washington Consensus approach to macroeconomic policy and development; the role of equity finance in the ‘Tequila’ crisis recovery of the 1990s; and the evolution of the financial system in new EU member states such as the Czech Republic, Hungary, and the Baltic states.
      Hardback, 269 pages; published 2006

  Understanding Modern Money: The Key to Full Employment and Price Stability
By L. Randall Wray

     Professor Wray explains why full employment and price stability are not mutually exclusive goals—contrary to prevailing economic theory and policy—and proposes a plan that would achieve both objectives: a government employer-of-last-resort program that would employ the otherwise unemployed, increase labor productivity and economic growth, and, at the same time, stabilize the wage scale and thus act as a brake on inflation.
    The author brings powerful new ideas to a critical economic issue. He demonstrates that, for policy makers who ordinarily are forced to choose between unemployment and inflation, there is a very positive alternative.
    Paperback, 198 pages; published 1998, reprinted 2003




  Credit and State Theories of Money: The Contributions of A. Mitchell Innes
Edited by L. Randall Wray

     Innes was neither an economist nor a prolific writer, but his 1913 article in the Banking Law Journal can be considered a signpost on the road not taken in monetary theory.
     Innes argued that coins are tokens (their exchange value is different from that of the precious metals comprising them) and that money, by its very nature, is credit. Keynes agreed; ultimately, the ideas of Innes showed up—along with those of Frederick Knapp’s state money approach—in his Treatise on Money.
     In the ensuing decades, this promising integration was largely forgotten, as serious money research was shoved to the fringes of economics. This book examines the early contributions of Innes, the resulting debate, and the consequences of economists’ adoption of an erroneous conception of money.
     Hardback, 271 pages; published 2004



  El Papel del Dinero Hoy
Escrito por Dr. L. Randall Wray

    En esta publicación, el Profesor Wray explica porqué el empleo y la estabililidad de precios no son metas que se excluyen mutuamente--- contrario a lo que indica la prevaleciente teoría económica y política---y propone un plan que puede hacer posible el alcance de dos objetivos: un gobierno que ofrezca empleos a través de un programa de ‘ultimo recurso’ que pudiera emplear a quienes de otra manera estuvieren desempleados; incrementar la productividad en el trabajo y el crecimiento económico. Al mismo tiempo, estabilizar la escala de salarios y por ende actuar como freno a la inflación.
    Wray aporta ideas innovadoras y poderosas orientadas a un tema crítico para la economía. El autor demuestra a los tomadores de decisiones políticas quien ordinariamente son forzados a escoger entre el desempleo y la inflación, que existe una alternativa positiva.
    Papel; 499 paginas; publicado en 1998, re-impreso en 2003



  Full Employment and Price Stability: The Macroeconomic Vision of William S. Vickrey
Edited by Mathew Forstater and Pavlina R. Tcherneva

     Bill Vickrey was an economist with a heart; for him, economics provided a set of tools to make society better off. He is best known for his work in microeconomics—indeed, he won a Nobel Memorial Prize for it in 1996—yet his last years were dedicated to macroeconomic policy issues, areas that he saw as necessary to create a foundation of equity and efficiency.
    This collection is primarily concerned with Vickrey’s writings on macro policy issues, including his single-minded commitment to full employment. The introduction summarizes his solutions to the problems of unemployment and inflation and proposes a policy for eradicating both simultaneously, a proposal inspired by and based on Vickrey’s work in the final years of his life.
    Hardback, 141 pages; published 2004



  The State, the Market and the Euro: Chartalism versus Metallism in the Theory of Money
Edited by Stephanie A. Bell and Edward J. Nell

      The centerpiece of this book is an article by Charles Goodhart that criticizes the theoretical basis for the European Monetary Union. Goodhart characterizes the theory as Metallism and presents an alternative theory—Chartalism—as a more compelling and historically accurate view of money.
      According to M theory, money is a ‘creature of the market,’ where markets are made up of rational agents, making optimal choices, subject to various constraints—an individualist approach. According to C theory, money is a ‘creature of the state,’ and it emphasizes the relationship between the state’s power to tax and the demand for money (to settle these obligations)—an institutionalist approach. The former has dominated research and policy formulation, but the latter leads to a radically different interpretation of the ramifications of the euro’s introduction.
     This book adds a historical perspective, expands the argument, and comments on the central themes of the debate; it concludes with Goodhart’s responses to the critique.
     Hardback, 202 pages; published 2003


  Trabalho E Moeda Hoje: : a Chave para o Pleno Emprego e a Estabilidade dos Preços

De L. Randall Wray

     Professor Wray explica por que o pleno emprego e a estabilidade de preços não são objetivos incompatíveis - ao contrário do que afirmam as teoria e política econômicas atuais - e propõe um plano capaz de obter os dois objetivos: um programa em que o governo atua como empregador-de-última-instânca e é responsável por empregar a população desempregada, aumentando a produtividade do trabalho e o crescimento econômico, além de, ao mesmo tempo, estabilizar o nível dos salários e assim agir como um freio para a taxa de inflação.
    O autor apresenta idéias novas e poderosas a uma questão econômica crítica. Ele demonstra que, para os formuladores de política que são forçados cotidianamente a escolher entre o desemprego e a inflação, há uma alternativa muito positiva.
    Paperback, 198 páginas; publicado 1998, reimpresso 2003



  Reinventing Functional Finance: Transformational Growth and Full Employment
Edited by Edward J. Nell and Mathew Forstater

    In the 1930s-40s, Abba Lerner and members of the New School’s Graduate Faculty laid out functional-finance principles that the government should implement to bring about full employment. They contended that fiscal policy should be undertaken and judged only according to its impact on the economy, and not because of any established notions of sound policy and budgetary discipline.
    Decades later, there has been a renewed interest in Lerner’s work; and a conference of eminent economists—including Musgrave, Duesenberry, Eisner, Turgeon, Colander, and Heilbroner—met in 1998 to re-examine functional-finance principles in a modern context. The authors critique the standard thinking on NAIRU, inflation, employment, budget deficits, and employer-of-last-resort programs and arrive at some provocative conclusions.
    Hardback, 347 pages; published 2003



  Contemporary Post Keynesian Analysis

Edited by L. Randall Wray and Mathew Forstater

    This volume contains papers presented at the 7th International Post Keynesian Summer School and Workshop in 2002. The event was part of a series dating from the late 1970s, when the conferences were initiated to expose graduate students around the world to Keynes’s general theory and 60-plus years of critique and development.
      Leading Post Keynesian scholars examine prevailing issues in the areas of: current economic policy; monetary theory and policy; development, growth, and inflation; growth, inflation, and distribution; methodology; and history of thought. Topics include wage bargaining and monetary policy in the EMU, electronic money and its effects, money as a social convention, currency boards and unions, economic policy in transitioning countries, inflation dynamics in Australia, ‘demi-regularities’ of pricing behavior, and Allied, German, and Latin perspectives on inflation.
      Hardback, 356 pages; published 2004


  Post Keynesian Macroeconomics: Essays in Honour of Ingrid Rimda
pk macroeconomics
Edited by Mathew Forstater, Gary Mongiovi and Steven Pressman

Edited by three very well known academics in the field and contributed to by John Smithin, Laurence Moss and G. C. Harcourt, this volume reflects the breath of the honouree’s interests and as such it covers a wide range of topics including political economy, labour economics, history of economic thought and macroeconomics.

Ingrid Rima, one of the first women to teach economics in America, has been a major figure in the development of Post-Keynesian economics over the past forty years. Rima has made numerous contributions to the fields of labour economics, history of economic thought, and Post Keynesian economic theory and in this volume the editors and contributors recognize them.

Hardcover, Routledge Frontiers of Political Economy; published 2007

Keynes and macroeconomics after 70 years: critical assessments of The general theory

70yr Edited by L. Randall Wray and Mathew Forstater,

In this substantial new collection, esteemed Post-Keynesian scholars reassess the relevance of Keynes's The General Theory to a broad array of topic areas, ranging from the environment, investment finance, exchange rates, and socialism, as well as inquiries into general Post-Keynesian theory.

In response to the current economic crisis, many people looking for new solutions are excitedly re-discovering the Post-Keynesian tradition of money modeling and theory. This book offers a broad array of recent Post-Keynesian scholarship, providing a good contextual understanding of the current state of the field from which innovative money solutions are springing. Topics covered here include: Keynes and heterodox economics, the founding fathers of Post-Keynesian economics, Keynesian models, Keynesian policy, and the modern development and extensions of Keynesian economics.

Academics and practitioners eager for a solid heterodox approach to economics and money theory, the environment, finance, and political science will find the book an invaluable addition to their collection.

Cheltenham, UK; Northampton, MA: Edward Elgar, c2008.


Keynes for the twenty-first century: the continuing relevance of The general theory

21st Edited by Mathew Forstater, and L. Randall Wray

This book provides an assessment of the impact that Keynesian economics has had over the past 70 years, with contributions by many of Keynes's leading proponents.

New York: Palgrave Macmillan, 2008.


Growth, distribution, and effective demand: alternatives to economic orthodoxy: essays in honor of Edward J. Nell

nell  Edited by by George Argyrous, Mathew Forstater, and Gary Mongiovi,L. Randall Wray and Mathew Forstater,

Growth, Distribution, and Effective Demand presents original essays on a variety of topics in theoretical and applied economics. The book honors the work of Edward J. Nell and develops interconnected themes that run through the modern Post-Keynesian tradition. The first part deals with the fundamental idea that economic growth is demand-driven, with special attention to policy ramifications. The second theme concerns the connection between economic growth and the structural characteristics of a market economy. These issues are closely linked to a critical tradition that calls into question key elements in orthodox economics. The final part of the book aims to buttress non-orthodox approaches to growth and distribution by critiquing particular aspects of the conventional theory, by elaborating neglected themes in non-orthodox theory, or by exploring some overlooked methodological ideas.

Armonk, N.Y.: M.E. Sharpe, c2004.