scholarly journals An Interpretation of Controversial Points in Keynes's General Theory

2015 ◽  
Vol 1 (1) ◽  
pp. 71-95
Author(s):  
Mario Luiz Possas
Keyword(s):  
General Theory ◽  
Supply And Demand ◽  
General Concept ◽  
Usual Sense ◽  
Effective Demand ◽  
Demand Functions ◽  
First Case ◽  
Long Run ◽  
Working Out

The paper offers an interpretation of the General Theory based on two main assumptions:  (i) that its core is heterodox (meaning far from Neoclassical references) and (ii) that, while not working out a dynamic model, it is neither static nor based on the notion of equilibrium in the usual sense, i.e. as an attractor. It amounts rather to a foreword to a dynamic theory, given its emphasis on (future) time and expectations. The exposition is centered on the division between short and long run (period) with corresponding particularities and distinctions.  In the first case, a more general concept of the principle of effective demand is proposed, from which the relation investment/savings, supply and demand functions at the Micro level – where basic variables are determined -, the “point of effective demand” and corresponding aggregative versions are interpreted. In the second case, investment decisions are examined on the light of chap. 17, concerning investment in capital assets, i.e. individual demand for assets. The central concept of uncertainty is introduced here, giving place to money as an asset as well as to liquidity preference and the rate of interest theories. Long term expectations under uncertainty give rise to other two key concepts – the state of confidence and the convention. As a result, his peculiar and crucial notion of instability of investment follows, as well as its extension to the capitalist economy as a whole.

MERGE OF THE TECHNİCAL ANALYSİS TYPES GİVES THE BEST RESULTS İN CRYPTOCURRENCY MARKET

2021 ◽  
Vol 6 (14) ◽  
pp. 89-97
Author(s):  
MUSTAFA ÖZYEŞİL ◽  
MOHAMMAD AL-TARIFI
Keyword(s):  
Supply And Demand ◽  
Investment Strategy ◽  
Proof Of Concept ◽  
Market Capitalization ◽  
Long Run ◽  
Peer Network ◽  
Tangible Asset ◽  
The Relationship ◽  
Peer To Peer Network

Cryptocurrencies are a modern kind of financial instrument (Hudson & Urquhart, 2019), the first cryptocurrency is Bitcoin , proposed by who called Satoushi Nakamato (2008), as The open source was created on the proof-of-concept principle that transactions can be securely treated on a decentralized peer to peer network without the need for a central clearinghouse, which appeared 2009 ( Heid, 2013). The success of the bitcoin blazes a trail to what called ‘Altcoin” this expression means all the cryptocurrencies that set in motion after the victory of the bitcoin, these coins sell themselves as the best alternatives for the bitcoin (FRANKENFIELD, 2020) . There are many types for the altcoin. The third type of the cryptocurrency is called Tokens Unlike Bitcoin and Altcoins, tokens are not able to activate independently and are dependent on the grid of another cryptocurrency. That means they do not have their own core DLT or blockchain, but instead, are built on top of an existing cryptocurrency’s blockchain (Types of cryptocurrencies: explaining the major types of cryptos, 2019). The worth of bitcoin doesn’t depend on any tangible asset or economies of the countries while it is based upon the security of an algorithm which traces all transactions (Hudson & Urquhart, 2019). The studies determine the number of the bitcoin price development in the long -run (Ciaian, Rajcaniova, & Kancs, 2018): • Market forces of the Bitcoin supply and demand • The bitcoin’s attractiveness for the investors • The influence of global macro-financial developments If you're forming an investment strategy designed to help you trail long-term financial intentions, understanding the relationship between company size, return potential, and risk is vital. (Market cap—or market capitalization—refers to the total value of all a company's shares of stock, 2017) .Hence , Manifested importance a cryptocurrency’s market capitalization as the total values of all coins currently in circulation. the cryptocurrency’s market cap contains what’s called Bitcoin Dominance that is the ratio between the market cap of bitcoin to other coins of the cryptocurrency markets (jacobcanfield, 2019) . Cryptocurrency trade is attractive type of investment. this market treated the same of the foreign exchange and stock market ( Radityo, Munajat, & Budi, 2017). The investors using the same basic in investment (buy low, sell high) but they need to calculating the risks

Keynes and Anchorless Banking

1998 ◽  
Vol 20 (1) ◽  
pp. 71-82 ◽  
Author(s):  
Thomas K. Rymes
Keyword(s):  
General Theory ◽  
Supply And Demand ◽  
Monetary Theory ◽  
John Maynard Keynes ◽  
Monetary Economy ◽  
The Future ◽  
Theory Of Value ◽  
Working Out ◽  
Theory Of Production ◽  
Special Case

In The General Theory, John Maynard Keynes broke with the quantity theory of money, not just in working out a monetary theory of production but, as he says, in arguing the case for a monetary theory of value. Keynes writes (CW, 7, pp. xxii-xxiii):A monetary economy, we shall find, is essentially one in which changing views about the future are capable of influencing the quantity of employment and not merely its direction. But our method of analyzing the economic behaviour of the present under the influence of changing ideas about the future is one which depends on the interaction of supply and demand, and is in this way linked up with our fundamental theory of value. We are thus led to a more general theory, which includes the classical theory with which we are familiar, as a special case.

scholarly journals The place of The General Theory in the economics canon

2020 ◽  
Vol 7 (1) ◽  
pp. 79-92
Author(s):  
Constantinos Repapis
Keyword(s):  
Economic Theory ◽  
General Theory ◽  
Real World ◽  
Human Agency ◽  
Economic Thought ◽  
New Paradigm ◽  
Effective Demand ◽  
The Real ◽  
Economic Advice

This paper presents in non-technical language an interpretation of the argument of The General Theory, which is the importance of effective demand and its relation to human agency. It argues that The General Theory is not only a treatise on economic theory, but also, and more importantly, a treatise on methodology, i.e. how economists should reason when dealing with the complexity of the real world. Implicit in this analysis is a distinct position on the remit of the economist and the nature of economic advice and policy. This interpretation suggests that this understanding forms a new paradigm of thinking about the economy at large, centred around the concept of uncertainty. This insight developed into a new analytical tradition in economics, the Post Keynesian School of economic thought that sees uncertainty and effective demand as the key analytical long term concepts for understanding how the economy evolves through time.

scholarly journals Research on the influence mechanism of China’s industrial circulation on long-term interest rate: Empirical analysis based on VEC model

2021 ◽  
Vol 251 ◽  
pp. 01081
Author(s):  
Qiao Han ◽  
Yang Jiayun
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Empirical Test ◽  
Supply And Demand ◽  
State Space Model ◽  
Real Economy ◽  
Influence Mechanism ◽  
Vec Model ◽  
Long Run

As the adjustment space of China’s monetary policy is gradually expanding and the adjustment intensity is gradually increasing, the influence of external factors on money supply and demand is gradually weakening. The endogenous mechanism of interest rate in the real economy needs to be further explored. Through the long-term interest rate model, the paper reveals the relationship between the circulation status of real economy and long-term interest rate. Based on the monthly data of China from 2003 to 2019, the paper establishes the error-correction VEC model and the state-space model to conduct empirical test and analysis on the influence mechanism of long-term interest rate. The final results show that exogenous factors such as monetary policy have certain influence on interest rate in the short run, while in the long run, interest rate is affected by the average circulation of goods described by the inventory increment of manufacturers and the actual production input of enterprises.

Heterogeneous corruption and inflation

2019 ◽  
pp. 81-96
Author(s):  
I. L. Kavitskaya ◽  
I. N. Safonov
Keyword(s):  
Indirect Effects ◽  
Rational Expectation ◽  
First Case ◽  
Long Run ◽  
Different Types ◽  
Short Run ◽  
Research Findings ◽  
Short And Long Term ◽  
Simultaneous Influence

The article analyzes the simultaneous influence of different types of corruption on inflation in the absence of seignorage. Basing on the model of fiscal and monetary policymakers behavior, we analyze the joint impact of “grand” and “petty cash” corruption on economy in short and long term in discretionary policy and rational expectation assumptions. Research findings demonstrate that even in the absence of seignorage heterogeneous corruption relates to inflation differently in short and long term: in the first case, relationship is positive and straightforward, in the second, some indirect effects take place what reduces equilibrium inflation in the long run compared to the short run.

Separating owner-occupier and investor demands for housing in the Australian states

2019 ◽  
Vol 37 (2) ◽  
pp. 215-232 ◽  
Author(s):  
Le Ma ◽  
Richard Reed ◽  
Jian Liang
Keyword(s):  
Home Ownership ◽  
House Prices ◽  
Supply And Demand ◽  
Housing Markets ◽  
Housing Affordability ◽  
Housing Supply ◽  
Content Type ◽  
Western Countries ◽  
Long Run

PurposeThere has been declining home ownership and increased acceptance of long-term renting in many western countries including Australia; this has created a problem when examining housing markets as there are dual demand and include both owner-occupiers and investors. The purpose of this paper is to examine the long-run relationship between house prices, housing supply and demand, and to estimate the effects of the two types of demand (i.e. owner-occupier and investor) on house prices.Design/methodology/approachThe econometric techniques for cointegration with vector error correction models are used to specify the proposed models, where the housing markets in the Australian states and territories illustrate the models.FindingsThe results highlight the regional long-run equilibrium and associated patterns in house prices, the level of new housing supply, owner-occupier demand for housing and investor demand for housing. Different types of markets were identified.Practical implicationsThe findings suggest that policies that depress the investment demand can effectively prevent the housing bubble from further building up in the Australian states. The empirical findings shed light in the strategy of maintaining levels of housing affordability in regions where owner-occupiers have been priced out of the housing market.Originality/valueThere has been declining home ownership and increased acceptance of long-term renting in many western countries including Australia; this has created a problem when examining housing markets as there are dual demand and include both owner-occupiers and investors. This research has given to the relationship between supply and dual demand, which includes owner-occupation and investment, for housing and the influence on house prices.

scholarly journals ‘Don't just listen: Tell me what to do!’

2017 ◽  
Vol 24 (1) ◽  
pp. 116-122 ◽  
Author(s):  
Philippa Hawke
Keyword(s):  
Young People ◽  
Personal Development ◽  
Action Plan ◽  
Human Form ◽  
Children And Young People ◽  
Online Counselling ◽  
Long Run ◽  
Trained Counsellor ◽  
Working Out

AbstractCounselling is not a well-understood concept. Many people who haven't undergone counselling believe a counsellor's role is to listen to a person tell their problem and then ‘help’ them by giving advice about what they should do. Children and young people struggle with the idea that a counsellor is not a human form of Google. It is not easy for them to hear that their problem is complex and that sometimes working out an action plan themselves, with guidance from a trained counsellor, offers better value to their lives in the long run. Kids Helpline is an Australian child and youth-focused telephone and online counselling service with a long-term view of what ‘helping’ looks like. The free-call 24/7 counselling line challenges young clients to see beyond the immediate gratification of receiving instantaneous ‘answers’ to problems, and to value more highly the process of learning problem-solving and decision-making skills, transferable from issue to issue over the course of a lifetime. This article seeks to highlight the early intervention and prevention role that child helplines play in young people's lives, encouraging and strengthening children and young people's early forays into exploring consequential thinking. The article describes the processes used by Kids Helpline counsellors to encourage children and young people to become action planners, and demonstrates young people's capacity to appreciate complexity and personal development.

IMPACT OF COVID-19 ON THE GLOBAL ECONOMY: IS FEAR OF AN INFLATION PANDEMIC JUSTIFIED?

2021 ◽  
Author(s):  
Jasenka Bubić ◽  
Luka Bašić
Keyword(s):  
Global Economy ◽  
Supply And Demand ◽  
Current Situation ◽  
Chinese Economy ◽  
The Real ◽  
Long Run ◽  
The World ◽  
Macroeconomic Indicators ◽  
Economic Imbalances

International economies are fragile and vulnerable to the various volatilities that occur, due to classic economic imbalances caused by financial meltdowns, inflated balloons, or other internal and external macroeconomic shocks, due to unforeseen phenomena in the form of the economic term "black swan". The first focus of the paper was placed on examining the real impact of the virus on key macroeconomic indicators of the global economy and what is the attitude of international politics when it comes to creating a crisis structure. The implementation of the policy seen since the beginning of the 2020 crisis has led to the strengthening of an economic doctrine that is mitigating and out of mind, which has again shown that the world of central banks is easy on the "monetary trigger". The second focus of the work is singled out as a subtheme, where the current situation with China's Evergrande is to be addressed and how much impact the ultimate negative outcome can leave on the current recovery of the world economy. For the past twenty or thirty years, China's economic picture has led it to the world's second strongest economy, thanks precisely to the strong implementation of China's development policy. But rightly the world wonders what the real growth of the Chinese economy is. Labour's third focus has been placed on the issue of inflation as a potentially long-term problem. The implementation of the agreed policy over the last year and a half is a realistic reflection of the current situation with inflation. It is crucial to process whether its sudden jump can be a long-term problem for the entire economic structure of the European and global economies. Whether inflation can be corrected in the long run through the law of supply and demand, as has always been shown so far, needs to be seen.

scholarly journals ИННОВАЦИОННЫЕ ПОДХОДЫ РАЗВИТИЯ ПРЕДПРИНИМАТЕЛЬСТВА

2018 ◽  
Vol 2 (5(17)) ◽  
pp. 61-64
Author(s):  
Турсунов Имамназар Эгамбердиевич ◽  
Курбанов Алишер Бобокулович
Keyword(s):  
Technological Progress ◽  
Production Management ◽  
State Regulation ◽  
Economic Conditions ◽  
Small Scale ◽  
Long Run ◽  
Low Costs ◽  
Production Organization ◽  
Working Out

The paper recommends working out a comprehensive state program on innovative development of the Uzbekistan's economy for medium and long term perspective. The framework of equal economic conditions legislatively created for enterprises irrespective of their forms of ownership opens up the possibilities for an unbiased assessment of the advantageous forms of production organization. Competition between enterprises with various forms of ownership encourages the improvement of the internal system of production management, technical retooling, the improvement of the responsiveness to new achievements in science and technology, of manufacturing the better quality goods at low costs and cheaper prices In the long run this proves to be a powerful lever of economic, scientific and technological progress. The issues of the formation of innovative model of small-scale business end entrepreneurship development, elaboration of concrete forms and methods of state regulation of innovations, carried out by entrepreneurial structures that will provide the innovative tendency of national economy are considered in the article.

Infrastructure mortgage in Russia: Opportunities and prospects

2019 ◽  
pp. 114-133
Author(s):  
G. I. Idrisov ◽  
Y. Yu. Ponomarev
Keyword(s):  
Federal Government ◽  
Public Debt ◽  
Budget Deficit ◽  
Expert Assessment ◽  
Inflation Expectations ◽  
Direct Impact ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Negative Effect

The article shows that depending on the goals pursued by the federal government and the available interbudgetary tools a different design of infrastructure mortgage is preferable. Three variants of such mortgage in Russia are proposed, each of which is better suited for certain types of projects and uses different forms of subsidies. According to our expert assessment the active use of infrastructure mortgage in Russia can increase the average annual GDP growth rate by 0.5 p. p. on the horizon of 5—7 years. In the long run the growth of infrastructure financing through the use of infrastructure mortgage could increase long-term economic growth by 0.9 p. p., which in 20—30 years can add 20—30% of GDP to the economy. However, the change in the structure of budget expenditures in the absence of an increase in the budget deficit and public debt will cause no direct impact on monetary policy. The increase in the deficit and the build-up of public debt will have a negative effect on inflation expectations, which will require monetary tightening for a longer time to stabilize them.

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