Palgrave Studies in the History of Economic Thought
Palgrave Studies in the History of Economic Thought publishes contributions by leading scholars, ... more Palgrave Studies in the History of Economic Thought publishes contributions by leading scholars, illuminating key events, theories and individuals that have had a lasting impact on the development of modern-day economics. The topics covered include the development of economies, institutions and theories.
Istituto Lombardo - Accademia di Scienze e Lettere - Rendiconti di Lettere, Jul 20, 2021
Adunanza del 24 settembre 2020) SUNTO.-Le note in ricordo di Giorgio Lunghini affrontano il suo a... more Adunanza del 24 settembre 2020) SUNTO.-Le note in ricordo di Giorgio Lunghini affrontano il suo approccio alla teoria economica e in particolare la sua analisi delle cause della grande crisi economica del 2007-2013. Egli identifica quattro cause principali della crisi: 1) la finanziarizzazione dell'economia; 2) il crescente indebitamento privato e pubblico; 3) gli squilibri strutturali commerciali e dei movimenti di capitale mondiali (in USA, Asia, sud America e in Europa). L'esistenza di paesi strutturalmente in deficit e in surplus commerciale, di paesi debitori e creditori; 4) il ruolo della teoria economica e in particolare il ritorno al laissez-faire/liberismo (monetarismo; critiche ai Keynesiani più che a Keynes che, secondo Lunghini, non è un Keynesiano «bastardo»); il ritorno alla "Treasury view", al "Washington consensus" e al "Bruxelles consensus". Nelle Note, queste quattro cause vengono analizzate in dettaglio. *** ABSTRACT.-The notes in memory of Giorgio Lunghini deal with his approach to economic theory and in particular with his investigation of the causes of the great economic crisis of the 2007-2013 years. He identifies four main causes of the crisis: 1) the financialization of the world economy; 2) the growing debt of the private and public sectors; 3) the global trade and capital movement imbalances (in USA, Asia, South America and Europe); the existence of countries which are in a structural trade deficit and surplus; the sharp division between debtor and creditor countries; 4) the role of economic theory e in particular the return to the laissez-faire doctrine and liberalism (monetarism; the critiques to "bastard" Keynesians rather than Keynes who, in Lunghini's view, is not a Keynesian); the return to the "Treasury view", the "Washington consensus" and "Bruxelles consensus". In the Notes, these four causes are analysed in detail.
Two diametrically opposed positions have developed in the literature as regards the impact of the... more Two diametrically opposed positions have developed in the literature as regards the impact of the Great Depression on Keynes’s economics: while ‘externalists’ consider the Great Depression as the determining cause of Keynes’s revolution, other subscribe to an ‘internalist’ view of the development of Keynes’s thinking from the 'Treatise on Money' to the 'General Theory'. The article suggests a third possibility, namely that Keynes’s ‘method’, and methodological continuity throughout his writings, allow the possibility to adapt theories to changing times and circumstances, that is, to different quaesita. It thereby emphasizes that, though elaborated having in mind the theoretical framework of the 'Treatise on Money', Keynes’s early articles on the Great Depression tell much about the future as well as the past of his theoretical journey. In particular, the article illustrates two ‘big pictures’ providing the background for the Keynes’s evolving thoughts on the ...
The paper provides a panoramic view on Keynes’s way of reasoning in economics, with a view to hig... more The paper provides a panoramic view on Keynes’s way of reasoning in economics, with a view to highlight the radical “difference” of his thinking with respect to both scholars of his times and contemporary economists. We argue that Keynes was un-modern in the 1930s as he is (and appears) un-modern today; but also that in this lies his modernity. Keynes is modern in trying to transform economics into a discipline of complexity; still, he is profoundly un-modern when discussing the conditions that economics must meet in order to achieve this result. The paper evidences in his strong commitment to avoiding any reductionist approach to the complexity of socio-economic systems the undisputed greatness of his thought.
exalting the astonishing results of the Bretton Woods 'compromise': the system's architects show,... more exalting the astonishing results of the Bretton Woods 'compromise': the system's architects show, in Rodrik's view, how economists can 'remake part of our world by applying simple economic frameworks to public problems' (p. 4). The example is highly illustrative: Keynes is celebrated for shaping the 'embedded liberalism' nature of the most successful international monetary system in history, but as known, the American negotiator opposed the 'built-in expansionary bias' (Davidson, 2003, p. 215) embodied in his plan (see Carabelli and Cedrini, 2014A, and the bibliography cited there). The ambiguity intrinsic in any revolution affects Keynes's as well, all the more so when we leave the terrain of policy and venture into the realm of economic theory. The main difficulties involved in evaluating the success of Keynes's revolution appear
ABSTRACT In the past twenty years, there has been considerable debate on the “coherence” of post ... more ABSTRACT In the past twenty years, there has been considerable debate on the “coherence” of post Keynesian economics, in view of post Keynesian economists’ ambitions to develop a paradigmatic alternative to neoclassical economics. Given the growing importance of methodological aspects in this discussion, this article addresses the differences of approach to economic theory between the fathers of the two most important strands in post Keynesian economics. We thus focus on Keynes’s criticism of Kalecki’s theory of the business cycle and the tensions between Keynes’s logical approach and Kaleki’s formal modeling. We show that in criticizing Kalecki’s theory, Keynes made use of the same methodological criticism (based on detecting logical fallacies in reasoning) he had employed to attack both the classical theory and contemporary “pseudo-mathematical” models. After illustrating these fundamental differences between Keynes and Kalecki about the proper way of doing economics, we draw some conclusions on the possible future evolution of post Keynesian economics.
The authors investigate the clash between general theory and practical constraints. They find in ... more The authors investigate the clash between general theory and practical constraints. They find in Keynes some answers to difficult questions.
The paper provides a methodological reading of Keynes's "The Economic Consequences of the Peace".... more The paper provides a methodological reading of Keynes's "The Economic Consequences of the Peace". Drawing on the close interdependence between theory and method in Keynes's economics, which he considered as a branch of logic, a correct way of reasoning about a complex economic material, we reconstruct the rationale of Keynes's imaginative solutions for the troubles caused by WWI and the Versailles Treaty. We thereby shed light on a method of thinking out the specific problems of international economic relations that Keynes will be consistently using (though adapting it to changing times and circumstances) in his work of international economics and diplomacy. A method which will have a direct influence on the contents of Keynes's Bretton Woods reform plans, and may be of great importance in directing European policy-makers to a structural reform of the continent's economic architecture.
Palgrave Studies in the History of Economic Thought
Palgrave Studies in the History of Economic Thought publishes contributions by leading scholars, ... more Palgrave Studies in the History of Economic Thought publishes contributions by leading scholars, illuminating key events, theories and individuals that have had a lasting impact on the development of modern-day economics. The topics covered include the development of economies, institutions and theories.
Istituto Lombardo - Accademia di Scienze e Lettere - Rendiconti di Lettere, Jul 20, 2021
Adunanza del 24 settembre 2020) SUNTO.-Le note in ricordo di Giorgio Lunghini affrontano il suo a... more Adunanza del 24 settembre 2020) SUNTO.-Le note in ricordo di Giorgio Lunghini affrontano il suo approccio alla teoria economica e in particolare la sua analisi delle cause della grande crisi economica del 2007-2013. Egli identifica quattro cause principali della crisi: 1) la finanziarizzazione dell'economia; 2) il crescente indebitamento privato e pubblico; 3) gli squilibri strutturali commerciali e dei movimenti di capitale mondiali (in USA, Asia, sud America e in Europa). L'esistenza di paesi strutturalmente in deficit e in surplus commerciale, di paesi debitori e creditori; 4) il ruolo della teoria economica e in particolare il ritorno al laissez-faire/liberismo (monetarismo; critiche ai Keynesiani più che a Keynes che, secondo Lunghini, non è un Keynesiano «bastardo»); il ritorno alla "Treasury view", al "Washington consensus" e al "Bruxelles consensus". Nelle Note, queste quattro cause vengono analizzate in dettaglio. *** ABSTRACT.-The notes in memory of Giorgio Lunghini deal with his approach to economic theory and in particular with his investigation of the causes of the great economic crisis of the 2007-2013 years. He identifies four main causes of the crisis: 1) the financialization of the world economy; 2) the growing debt of the private and public sectors; 3) the global trade and capital movement imbalances (in USA, Asia, South America and Europe); the existence of countries which are in a structural trade deficit and surplus; the sharp division between debtor and creditor countries; 4) the role of economic theory e in particular the return to the laissez-faire doctrine and liberalism (monetarism; the critiques to "bastard" Keynesians rather than Keynes who, in Lunghini's view, is not a Keynesian); the return to the "Treasury view", the "Washington consensus" and "Bruxelles consensus". In the Notes, these four causes are analysed in detail.
Two diametrically opposed positions have developed in the literature as regards the impact of the... more Two diametrically opposed positions have developed in the literature as regards the impact of the Great Depression on Keynes’s economics: while ‘externalists’ consider the Great Depression as the determining cause of Keynes’s revolution, other subscribe to an ‘internalist’ view of the development of Keynes’s thinking from the 'Treatise on Money' to the 'General Theory'. The article suggests a third possibility, namely that Keynes’s ‘method’, and methodological continuity throughout his writings, allow the possibility to adapt theories to changing times and circumstances, that is, to different quaesita. It thereby emphasizes that, though elaborated having in mind the theoretical framework of the 'Treatise on Money', Keynes’s early articles on the Great Depression tell much about the future as well as the past of his theoretical journey. In particular, the article illustrates two ‘big pictures’ providing the background for the Keynes’s evolving thoughts on the ...
The paper provides a panoramic view on Keynes’s way of reasoning in economics, with a view to hig... more The paper provides a panoramic view on Keynes’s way of reasoning in economics, with a view to highlight the radical “difference” of his thinking with respect to both scholars of his times and contemporary economists. We argue that Keynes was un-modern in the 1930s as he is (and appears) un-modern today; but also that in this lies his modernity. Keynes is modern in trying to transform economics into a discipline of complexity; still, he is profoundly un-modern when discussing the conditions that economics must meet in order to achieve this result. The paper evidences in his strong commitment to avoiding any reductionist approach to the complexity of socio-economic systems the undisputed greatness of his thought.
exalting the astonishing results of the Bretton Woods 'compromise': the system's architects show,... more exalting the astonishing results of the Bretton Woods 'compromise': the system's architects show, in Rodrik's view, how economists can 'remake part of our world by applying simple economic frameworks to public problems' (p. 4). The example is highly illustrative: Keynes is celebrated for shaping the 'embedded liberalism' nature of the most successful international monetary system in history, but as known, the American negotiator opposed the 'built-in expansionary bias' (Davidson, 2003, p. 215) embodied in his plan (see Carabelli and Cedrini, 2014A, and the bibliography cited there). The ambiguity intrinsic in any revolution affects Keynes's as well, all the more so when we leave the terrain of policy and venture into the realm of economic theory. The main difficulties involved in evaluating the success of Keynes's revolution appear
ABSTRACT In the past twenty years, there has been considerable debate on the “coherence” of post ... more ABSTRACT In the past twenty years, there has been considerable debate on the “coherence” of post Keynesian economics, in view of post Keynesian economists’ ambitions to develop a paradigmatic alternative to neoclassical economics. Given the growing importance of methodological aspects in this discussion, this article addresses the differences of approach to economic theory between the fathers of the two most important strands in post Keynesian economics. We thus focus on Keynes’s criticism of Kalecki’s theory of the business cycle and the tensions between Keynes’s logical approach and Kaleki’s formal modeling. We show that in criticizing Kalecki’s theory, Keynes made use of the same methodological criticism (based on detecting logical fallacies in reasoning) he had employed to attack both the classical theory and contemporary “pseudo-mathematical” models. After illustrating these fundamental differences between Keynes and Kalecki about the proper way of doing economics, we draw some conclusions on the possible future evolution of post Keynesian economics.
The authors investigate the clash between general theory and practical constraints. They find in ... more The authors investigate the clash between general theory and practical constraints. They find in Keynes some answers to difficult questions.
The paper provides a methodological reading of Keynes's "The Economic Consequences of the Peace".... more The paper provides a methodological reading of Keynes's "The Economic Consequences of the Peace". Drawing on the close interdependence between theory and method in Keynes's economics, which he considered as a branch of logic, a correct way of reasoning about a complex economic material, we reconstruct the rationale of Keynes's imaginative solutions for the troubles caused by WWI and the Versailles Treaty. We thereby shed light on a method of thinking out the specific problems of international economic relations that Keynes will be consistently using (though adapting it to changing times and circumstances) in his work of international economics and diplomacy. A method which will have a direct influence on the contents of Keynes's Bretton Woods reform plans, and may be of great importance in directing European policy-makers to a structural reform of the continent's economic architecture.
Keynes on Uncertainty and Tragic Happines. Complexity and Expectations., 2021
Most economists who read the General Theory candidly admitted that they could not understand the ... more Most economists who read the General Theory candidly admitted that they could not understand the theoretical apparatus and found it easy to recast it in traditional terms. This book provides a masterful guide to the generally unrecognized methodological revolution that supported the new theoretical concepts -- a veritable lodestone that complements and expands understanding on the treatment of the economic magnitudes appropriate to the ideal of generality in the social sciences, to the applicability of probability, to the formulation of decision-making under uncertainty, and the foundations of economic policy in interdependent economic systems. Jan Kregel, Levy Economics Institute
Anna Carabelli sets out Keynes’s understanding of economics as a way of thinking, encompassing method and morals, rather than as a doctrine. She does so with her customary admirable scholarship and also her willingness to take controversial positions. I commend the volume most highly to Keynes scholars as a drawing-together and development of the themes that Carabelli has pursued since the publication of her 1988 classic, On Keynes’s Method. Further Keynes’s approach was designed to be applied to different contexts, so I enthusiastically recommend the volume also as a foundation and guide for anyone open to such a ‘new way of reasoning in economics’ for the modern era. Sheila Dow, University of Stirling This book examines the philosophy and methodology of Keynes, highlighting its novelty and how it presented a new form of economic reasoning. Exploring Keynes’s use of non-demonstrative logic, based on probability, commonalities are found in his economics, ethics, aesthetics, and international relations. Insights are provided into his reasoning and his approach to uncertainty, rationality, measurability of complex magnitudes, moral and rational dilemmas, and irreducible conflicts. This book investigates methodological continuity within Keynes’s work, in particular in relation to uncertainty, complexity, incommensurability, happiness and openness. It will be relevant to students and researchers interested in Keynes, probability, ambiguity, ethics and the history of economic thought.
Keynes on uncertainty and tragic happiness. Complexity and expectations., 2021
The books deals with Keynes's concepts of uncertainty and happiness and with his approach to econ... more The books deals with Keynes's concepts of uncertainty and happiness and with his approach to economic theory and international relations.
Uploads
Papers by Anna Carabelli
Anna Carabelli sets out Keynes’s understanding of economics as a way of thinking, encompassing method and morals, rather than as a doctrine. She does so with her customary admirable scholarship and also her willingness to take controversial positions. I commend the volume most highly to Keynes scholars as a drawing-together and development of the themes that Carabelli has pursued since the publication of her 1988 classic, On Keynes’s Method. Further Keynes’s approach was designed to be applied to different contexts, so I enthusiastically recommend the volume also as a foundation and guide for anyone open to such a ‘new way of reasoning in economics’ for the modern era. Sheila Dow, University of Stirling
This book examines the philosophy and methodology of Keynes, highlighting its novelty and how it presented a new form of economic reasoning. Exploring Keynes’s use of non-demonstrative logic, based on probability, commonalities are found in his economics, ethics, aesthetics, and international relations. Insights are provided into his reasoning and his approach to uncertainty, rationality, measurability of complex magnitudes, moral and rational dilemmas, and irreducible conflicts.
This book investigates methodological continuity within Keynes’s work, in particular in relation to uncertainty, complexity, incommensurability, happiness and openness. It will be relevant to students and researchers interested in Keynes, probability, ambiguity, ethics and the history of economic thought.