Twenty-First-Century Economic Policy

2021 ◽  
pp. 182-210
2021 ◽  
Vol 18 (3) ◽  
pp. 303-309
Author(s):  
Carl Christian von Weizsäcker ◽  
Hagen M. Krämer

With our book Saving and Investment in the Twenty-First Century: The Great Divergence (published as open access), we present a comprehensive theoretical explanation as well as empirical evidence for the phenomenon of low interest rates observed in the OECD countries and China and make various economic policy recommendations based on it. We have developed a new capital-theoretical approach to address these important issues. In what follows, we will discuss some of the more critical parts of Eckhard Hein’s otherwise very sympathetic review of our book.


1987 ◽  
Vol 21 (2) ◽  
pp. 209-231 ◽  
Author(s):  
I. G. Patel

On one of his many visits to India Kingsley Martin was once asked how he saw the prospects for Western Europe. His reply was that he was very optimistic as most of the leaders of Western Europe then were very old. If the transition from age to youth in national leadership is a sufficient basis for hope, we certainly have much to be grateful for in India. And our young Prime Minister has already struck a very responsive chord among large sections of Indian society by his promise of change. His mother had won the 1980 election on the promise of a ‘Government that works’. Mr Gandhi promised in 1984 a ‘Government that works faster’—thus heralding a promise of greater efficiency in general. When asked about the objective of his new Government, he used the now famous phrase that his objective was to take India into the twenty-first century. Taken at its face value, this was a rather vacuous phrase. It is not necessary for anyone to carry India, Atlas-like, into the twenty-first century. It would arrive at our doorstep in due course, as it will at everyone else's, and most probably without even a whimper.


2018 ◽  
Vol 46 (1) ◽  
pp. 105-121 ◽  
Author(s):  
Mariano Féliz

For Ruy Mauro Marini, writing in the mid-1990s, neodevelopmentalism in Latin America ended with the moratoria on debt repayment in Mexico and Brazil in the early 1980s, which ushered in an era of International Monetary Fund control. For him this demonstrated the inability of the Latin American bourgeoisie to achieve autonomy at the international level. Neodevelopmentalism returned in early-twenty-first-century Argentina in the local context of a new class politics and a wider context marked by the emergence of China in the world economy and the influence of Chavismo. It consisted of an economic policy that consolidated the new hegemonic groups led by transnational capital through the superexploitation of labor and nature and the revival of the myth of development expressed by the notion of “growth with social inclusion.” For a time the project was characterized by high rates of profit and high levels of (albeit precarious) employment, but, as the global crisis of 2008 revealed its limitations and the “fine-tuning” of economic policy produced a decline of real incomes and consumption, it led to fragmentation of the political spectrum and a realignment of its principal actors. Mauricio Macri’s election to the presidency in 2015 represented a counterrevolution that, as Marini predicted decades ago, would involve more violent superexploitation and stronger imperialist influence. Para Ruy Mauro Marini, escribiendo a mediados de la década de 1990, el neodesarrollismo en América Latina terminó con la moratoria sobre el pago de la deuda en México y Brasil a principios de la década de 1980, lo que marcó el comienzo de una era de control del Fondo Monetario Internacional. Para él, esto demostró la incapacidad de la burguesía latinoamericana para lograr la autonomía a nivel internacional. El neodesarrollismo regresó en la Argentina de principios del siglo XXI en el contexto local de una nueva política de clase y un contexto más amplio marcado por el surgimiento de China en la economía mundial y la influencia del chavismo. Consistió en una política económica que consolidó los nuevos grupos hegemónicos liderados por el capital transnacional a través de la superexplotación del trabajo y la naturaleza y el renacimiento del mito del desarrollo expresado por la noción de “crecimiento con inclusión social.” Durante un tiempo el proyecto fue caracterizado por altas tasas de ganancia y altos niveles de empleo (aunque precario), pero, como la crisis global de 2008 reveló sus limitaciones y el “ajuste” de la política económica produjo una disminución de los ingresos reales y el consumo, condujo a la fragmentación del espectro político y una realineación de sus principales actores. La elección de Mauricio Macri a la presidencia en 2015 representó una contrarrevolución que, como predijo Marini décadas atrás, implicaría una superexplotación más violenta y una influencia imperialista más fuerte.


2021 ◽  
Vol 18 (3) ◽  
pp. 293-302
Author(s):  
Eckhard Hein

This contribution discusses the book Saving and Investment in the Twenty-First Century: The Great Divergence by von Weizsäcker/Krämer (2021). It touches upon the underlying theoretical perspectives, von Weizsäcker’s neo-Austrian view and Krämer’s short-run Keynesian theory, and it proposes an alternative based on post-Keynesian distribution and growth theory. It also reviews the economic policy proposals of the book with respect to government deficits and debt, as well as international coordination of current-account balances, and finds broad agreement with modern post-Keynesian proposals, with some deviation when it comes to macroeconomic policy coordination among monetary, fiscal and wage/incomes policies. It concludes that these economic policy agreements should not be taken as a surprise. The requirements of stabilising government deficits and debt, in the face of an excess of private saving over private investment at full employment, and an excess of the private desire to hold net financial assets over the private-sector supply of financial liabilities, are based on solid national income and financial accounting. They are thus compatible with different macroeconomic theories regarding long-run equilibrium and adjustments towards it.


Sign in / Sign up

Export Citation Format

Share Document