scholarly journals Retrospectives: An Early Supply-Side–Demand-Side Controversy: Petty, Law, Cantillon

2010 ◽  
Vol 24 (4) ◽  
pp. 207-217 ◽  
Author(s):  
John Berdell
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Financial Markets ◽  
Early Modern ◽  
Foreign Trade ◽  
Supply Side ◽  
Demand Side ◽  
Early Modern Europe ◽  
Time Period ◽  
Wide Range

Early modern Europe in the late seventeenth and early eighteenth centuries witnessed an unprecedented increase in the rate of economic growth, and governments entertained a wide range of proposals aimed at developing and harnessing foreign trade and emerging financial markets. In his magisterial survey of foreign trade doctrine titled Studies in the Theory of International Trade (1936), Jacob Viner pointed out that enlightened authors of that time were often nonbullionist mercantilists: they favored export promotion and import reduction not on the grounds that it would lead to an accumulation of gold, but on the grounds that it would increase trade and employment. My focus here is on how some key economists of this time period—William Petty, John Law, and Richard Cantillon—adumbrated disputes between supply-side and demand-side macroeconomics that have continued to the present day.

scholarly journals Macroeconomics of growth

2019 ◽  
pp. 59-91
Author(s):  
Deepak Nayyar
Keyword(s):  
Economic Growth ◽  
Degrees Of Freedom ◽  
Policy Instruments ◽  
High Growth ◽  
Supply Side ◽  
Demand Side ◽  
Macroeconomic Policies ◽  
Government Deficits ◽  
Inflation Rates ◽  
Investment Growth

Economic growth over fifty years in the Asian-14 has been stunning. Investment and savings, which rose rapidly, were the main drivers of growth. Education was also a sustained driver of growth on the supply-side. From the demand-side, growth was primarily private-consumption-expenditure led and investment led. The interaction between the supply-side and the demand-side suggests a virtuous circle of cumulative causation, where rapid investment growth coincided in time with rapid export growth, leading to rapid GDP growth. In macroeconomic management, the successful countries did not follow orthodox prescriptions of balanced budgets and price stability. Their primary macroeconomic objectives were economic growth and employment creation. Their macroeconomic policies were also more versatile in their use of policy instruments. Their success in maintaining high growth rates increased their degrees of freedom, which enabled them to finance government deficits and raise sustainable levels of government borrowing, while making higher inflation rates politically more acceptable, which would not have been possible if economic growth was slow.

Sites of Consumption in Early Modern Europe

2012 ◽  
Author(s):  
Evelyn Welch
Keyword(s):  
Sixteenth Century ◽  
Early Modern ◽  
Division Of Labour ◽  
Economic Security ◽  
Early Modern Europe ◽  
Wide Range ◽  
Material Goods ◽  
Modern Europe

In 1535, the Venetian patrician Francesco Priuli began a new account book for his household's daily expenditure. Despite his elevated standing, he kept it in his own hand, noting with precision how his money was spent, where, when, and on what. There are a number of things to note about this patrician family's behaviour. One is that a major mercantile city such as Venice already offered a wide range of shopping spaces and opportunities in the early sixteenth century (and had for many years). Also, forms of payment varied and could take place long after the goods had been transferred. Moreover, Priuli's purchases (and his occasional sales) make it clear that Venice's large second-hand markets provided economic security. This article focuses on sites of consumption in early modern Europe, first considering the moral aspects of the division of labour and then discussing the spectacles of consumption. It also examines credit, the sites of bargaining and exchange of material goods, and activities such as lotteries, second-hand dealers, pawnbrokers, and auctions.

scholarly journals Covid-19 pandemic and Foreign Trade: A Comparative Analysis in Indian Context

2021 ◽  
Vol 58 (1) ◽  
pp. 3334-3340
Author(s):  
Devasish Hazarika
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Foreign Trade ◽  
Trade Balance ◽  
Secondary Data ◽  
Preventive Measure ◽  
Trade Surplus ◽  
Indian Context ◽  
Before And After ◽  
Merchandise Trade

Covid-19 and lockdown as its preventive measure hit Indian Economy at a worst time. The trade performances prior to the pandemic was not satisfactory and held a decreasing trend in terms of the previous periods. In this paper an honest attempt has been made to analyse international trade as an Engine of Economic Growth, that is, its importance or significance in Economic Growth processes as well as to assess the comparative trend in international trade before and after the pandemic situation. This paper is based on secondary data. The paper is essentially a descriptive and analytical in nature. Statistical tools like graph, table etc are used for better understanding. The foreign trade is found to be diminishing in its share while analysing the data of last 10 years prior to the pandemic and nationwide lockdown. The merchandise trade surplus in June 2020 was estimated at USD 0.79 billion as against deficit of USD 15.28 billion in June, 2019. The trade balance for service is estimated at USD 6.83 on 15th July,2020. India recorded first trade surplus since January, 2002.

scholarly journals A Review of India’s Foreign Trade with reference to Post RBI Road MAP 2005 and Financing by Foreign Banks (FB) during the period 2003 -2013

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Ashok Vasant Edurkar
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Foreign Trade ◽  
Physical Distance ◽  
Trade Flows ◽  
Foreign Banks ◽  
Purchase Order ◽  
Road Map ◽  
Credit Financing ◽  
High Level

<em>Transactions related to global trade flows have significantly improved at present, on account of the internationalization and highly developed e-commerce. Exports and imports opportunities have substantially increased so also risk associated with international trade has reached a high level. Along with issues related to languages used for communication involved in international marketing, drafting of letter of intent / purchase order, drafting of letter of credit, financing during execution of purchase order, pre and post shipment inspection and finally negotiation of bank documents for collection of payments, the international trade was always been quite risky. This risk is because of the fact that exporters and importers are from different countries, separated not only by physical distance but by socio political conditions. Actual trade flows determines quantum of foreign trade. Foreign trade divided by GDP is a good measure of improvement or growth in foreign trade. (Harrison 1996). There is a positive relationship between Foreign Trade well supported by domestic as well as foreign banks and economic growth (Edwards 1992).Mixed results are obtained during the study related to explanation of the causal relationship between the degree of openness of the economy and economic growth. This paper takes a review of India’s Foreign Trade with reference to post RBI Road Map 2005 and financing by Foreign Banks (FB) during the period 2003-2013.</em>

Chinese Foreign Trade

1992 ◽  
Vol 131 ◽  
pp. 691-720 ◽  
Author(s):  
Nicholas R. Lardy
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Financial Markets ◽  
Foreign Trade ◽  
Direct Investment ◽  
International Financial Markets ◽  
Domestic Economy ◽  
Trade Volume ◽  
Reform Era

China's opening to the outside world was perhaps the most visible of its reforms of the 1980s. China's international trade volume grew dramatically, it attracted tens of billions of dollars of foreign direct investment and it became an active borrower in international financial markets. In contrast to the pre-reform era, foreign trade grew more rapidly than the domestic economy and in some regions of the country it appeared that it had become a powerful engine of growth, accelerating not only the speed of domestic development but the pace of structural and technical transformation as well.

Family Partnerships and International Trade in Early Modern Europe: Merchants from Burgos in England and France, 1470–1570

1988 ◽  
Vol 62 (3) ◽  
pp. 367-397 ◽  
Author(s):  
Constance Jones Mathers
Keyword(s):  
International Trade ◽  
Sixteenth Century ◽  
Early Modern ◽  
Family Members ◽  
Early Modern Europe ◽  
Northern Spain ◽  
Native Land ◽  
Family Partnerships ◽  
Modern Europe

In fifteenth– and sixteenth–century Europe, international trade was often conducted by family partnerships. Commonly, one partner remained in the family's native land, while one or more family members established themselves temporarily or permanently abroad. In this article, Professor Mathers describes the mercantile activity of three families from the Spanish city of Burgos who profited from family partnerships that linked trade from northern Spain to England and France. She also examines the ways in which family inheritance practices and alternative family investments and expenditures affected the capital and continuity of the partnerships.

scholarly journals Reflections on neo-Kaleckian growth regimes: a Marxian reproduction perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhao ◽  
Jiahe Tian ◽  
Yuchen Duan
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Distribution ◽  
Technological Progress ◽  
Supply Side ◽  
Demand Side ◽  
Content Type ◽  
The Impact ◽  
Kaleckian Model

PurposeThe neo-Kaleckian model follows the ideas of Marx, Keynes and Kalecki, that investment is a key influencing factor in the dynamics of the capitalist mode of production. Through the discussion of different forms of investment decision function, this paper constructs the analysis framework of wage-led and profit-led economic growth regimes.Design/methodology/approachThe model has become an important theoretical paradigm for current Western heterodox economists regarding the research on the impact of functional income distribution on economic growth, and it has a very large impact on both theoretical and empirical research. Starting from Marx's reproduction theory, this article discusses the theoretical shortcomings of the neo-Kaleckian growth regime model.FindingsThis paper mainly focuses on three aspects: (1) the ideological legacy of “Smith's Dogma”; (2) neglecting the restrictions on income distribution from the organic composition of capital and the surplus value rate; (3) technological progress and the formation of a new long economic wave.Originality/valueThe authors believe that the neo-Kaleckian model unilaterally emphasizes the demand-side factors in the economy and, unconsciously or not, ignores the role of the supply-side, which makes it encounter certain limitations in explaining long-term growth. Even if some empirical conclusions are employed to bridge functional income distribution and technological progress, there is still a lack of a theoretical basis for accurately describing long-term economic changes using this model. In order to better promote high-quality economic development and accelerate the formation of a new pattern of economic development in which the domestic large-scale cycle is the mainstay and the domestic and international double cycles promote each other, the authors need to adopt a policy combination with the supply-side as the main and the demand-side as the supplement, and to work from both sides.

Economic growth and the politics of entitlement

2009 ◽  
Vol 55 ◽  
pp. 97-125
Author(s):  
Robin Osborne
Keyword(s):  
Economic Growth ◽  
Human Nature ◽  
Supply Side ◽  
Aggregate Productivity ◽  
Demand Side ◽  
The Face ◽  
Minimum Number ◽  
Per Capita ◽  
Default Assumption ◽  
Over Time

Discussions of economic growth in antiquity have been primarily concerned with whether or not it occurred. Can we, from the array of unsystematic and often random information we have about individual and community wealth, and in the face of our very considerable ignorance about even such basic matters as population levels, find ways of measuring either aggregate or per capita growth? The second focus of scholarly energy has been on how growth might have been achieved, on levels of productivity and what limited them, on how institutions might have impeded or facilitated growth, and on the degree to which barriers may have been deliberately removed over time and growth consciously encouraged. This paper is not directly interested in either of those sets of questions. It is interested in who wanted growth in the first place.The default assumption in discussions of growth often seems to be, at least implicitly, that it is brought about either by need or by greed. The desire of individuals to satisfy their needs more fully leads to an increase in, at the very least, aggregate productivity, and might be expected inevitably to drive growth from the supply side. The desire of individuals to increase their consumption drives growth from the demand side. The default assumptions tend to stop there, as ifwhat counts as need is absolute, a matter of a certain minimum number of calories or ‘wheat equivalent’ a day, and as if greed is simply part of human nature.

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