This book explores key economic problems and new policies for the global economy of the 21st century.
The contributors discuss to what extent past policy errors were due to the incompetence of policymakers, and highlight problems including: international payments imbalances and currency crises, volatile security markets, inflation, achieving full employment, income distribution and alleviating individuals and nations of poverty.
In particular, topics explored include:
* the development problem experienced by Brazil during the past two decades
* the desire of most developing nations to achieve an export-led growth strategy
* the constraint of balance-of-payments on Mexico's long-term economic growth
* the relationship between group division and levels of economic development
* decreasing economic growth in the United States
* the consideration of effective demand, and structural and technological change
* the relationship between unemployment and profitability.
The book presents a challenging set of arguments, and illustrates the many problems faced by decision makers in their attempt at policy making in the new global economy. It will be of special interest to academic economists, central bankers, government policymakers and those involved in financial markets.
Edited by Paul Davidson, Holly Chair of Excellence Emeritus, University of Tennessee, US and Founding Editor of the Journal of Post Keynesian Economics
Contents Preface 1 Latin America's quasi-stagnation Luiz Carlos Bresser-Pereira 2 Neomonetarist dreams and realities: a review of the Brazilian experience Alfredo Saad-Filho and Lecio Morais 3 A critique of the proposal for monetary union in Mercosur Fernando Ferrari-Filho 4 The balance of payments-constrained growth model and the limits to export-led growth Robert A. Blecker 5 A new approach to test the balance of payments-constrained growth model, with reference to the Mexican economy Juan Carlos Moreno Brid 6 Banks' liquidity preference and financial provision Penelope Hawkins 7 Racial/ethnic disparity and economic development Willam Darity, Jr 8 Saving and investment: the theoretical case for lower interest rates Basil Moore 9 Demand constraints and the new economy Marc-Andre Pigeon and L. Randall Wray 10 Full employment policies must consider effective demand and structural and technological change: a prime point of Pasinetti's political economy Mathew Forstater 11 Unemployment and profitability: the case of Spain Jesus Felipe 12 VAT reduction for consumption-oriented, labor-intensive services in the European Union: a stimulus to employment? The case of Germany Hubert Hieke Index