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THE HEN-IRE-FPH PROJECT FOR DEVELOPING HETERODOX
ECONOMICS AND RETHINKING THE ECONOMY THROUGH DEBATE AND
DIALOGOUE
The Heterodox Economics Newsletter, The International Initiative for Rethinking the Economy (IRE), and the Charles Leopold Mayer Foundation for the Progress of Humankind (FPH) (www.fph.ch) have undertaken a joint project to promote the development of heterodox economics. It involves publishing in the Newsletter reviews, analytical summaries, or commentary of articles, books, book chapters, theses, dissertations, government reports, etc. that relate to the following themes: diversity of economic approaches, regulation of goods and services, currency and finance, and trade regimes. These themes relate to heterodox economics and to the open and pluralistic intellectual debates in economics. It is hoped that the reviews will contribute to strengthening the community of heterodox economists, and to the development of heterodox economic theory through the dissemination of ideas/arguments. The final aim of this project is to help heterodox economists come up with new proposals, both theoretical and applied.
LIST OF POSSIBLE READINGS FOR REVIEW
(26 August 2008)
Diversity of Economic Approaches
This theme speaks directly to the range of economic approaches that fall under the rubric of heterodox economics. But it also includes, for example, Islamic and Ghandian economics and others that I am unaware of. The reviews falling under the theme may deal with the nature of the various approaches and their commonalities and differences. They also may deal with the issues of theoretical and intellectual pluralism.
Review Material
Peter, F. (2001) “Rhetoric vs. realism in economic methodology: a critical assessment of recent contributions,” Cambridge Journal of Economics, 25(5): 571-89. taken
Bigo, V. (2008) “Explaining Modern Economics (as a microcosm of society),” Cambridge Journal of Economics, 32(4): 527-54. taken
Stanford, J. (2008) Economics for Everyone: a short guide to the economics of capitalism, Canadian Centre for Policy Alternatives.
Lavoie, M (2006) Introduction to Post-Keynesian Economics, New York: Plagrave. taken
Katzner, D. W. (2001) “The Significance, Success, and Failure of Microeconomic Theory,” Journal of Post Keynesian Economics 24(1): 41-59.
Bertola, L. (2002) “The Philosophy of Investment: a Post Keynesian perspective,’ Journal of Post Keynesian Economics 25(1): 105-22.
Shapiro, N. and Sawyer, M. (2003) “Post Keynesian Price Theory,” Journal of Post Keynesian Economics 25(3): 355-66.
Dequech, D. (2003) “Keynes’s General Theory: valid only for modern capitalism?” Journal of Post Keynesian Economics 25(3): 471-92.
Lang, D. and Setterfield, M. (2006-7) “History versus Equilibrium? On the possibility and realist basis of a general critique of traditional equilibrium analysis,” Journal of Post Keynesian Economics, 29(2): 191-210. taken
Dequech, D. (2007-8) “Neoclassical, mainstream, Orthodox, and Heterodox Economics,” Journal of Post Keynesian Economics, 30(2): 279-302. taken
Moore, B. (2006) Shaking the Invisible Hand, New York: Palgrave.
Cohn, S. M. (2007) Reintroducing Macroeconomics: a critical approach, Armonk: M. E. Sharpe.
Special Issue on John Kenneth Galbraith, (2005) Journal of Post Keynesian Economics, 28(1).
Howard, M. C. and King, J. E. (2001) “Where Marx was Right: towards a more secure foundation for heterodox economics,” Cambridge Journal of Economics, 25(6): 785-809.
Chang, H.-J. (2002) “Breaking the Mould: an Institutionalist political economy alternative to the neo-liberal theory of the market and the state,” Cambridge Journal of Economics, 26(5): 539-560. taken
Nelson, J. A. (2003) “Confronting the Science/Value Split: notes on feminist economics, institutionalism, pragmatism and process thought,” Cambridge Journal of Economics, 27(1): 49-64.
Nooteboom, B. (2004) “Governance and Competence: how can they be combined?” Cambridge Journal of Economics, 28(4): 505-26.
Lewis, P. (2004) Transforming Economics: perspectives on the critical realist project, London: Routledge.
Prayukvong, W. (2005) “A Buddhist Economic Approach to the Development of Community Enterprises: a case study from southern Thailand,” Cambridge Journal of Economics, 29(6): 1171-1185.
Lawson, T. (2006) “The Nature of Heterodox Economics,” Cambridge Journal of Economics, 30(4): 483-506. taken
Himmelweit, S. (2007) “The Prospects for Caring: economic theory and policy analysis,” Cambridge Journal of Economics, 31(4): 581-600.
Hanusch, H. and Pyka, A. (2007) “Principles of Neo-Schumpeterian Economics,” Cambridge Journal of Economics, 31(2): 275-90. taken
Levine, D. P. (2001) “Political Economy and the Idea of Development,” Review of Political Economy, 13(4): 523-37. taken
Aspromourgos, T. (2004) “Sraffian Research Programmes and Unorthodox Economics,” Review of Political Economy, 16(2): 179-206.
Lewis, P. A. (2005) “Structure, Agency and Causality in Post-revival Austrian Economics: tensions and resolutions,” Review of Political Economy, 17(2): 291-316.
Garnett, R. F. (2006) “Paradigms and Pluralism in Heterodox Economics,” Review of Political Economy, 18(4): 521-47. taken
Van Staveren, I. (2007) “Beyond Utilitarianism and Deontology: ethics in economics,” Review of Political Economy, 19(1): 21-36.
Matthaei, J. (2001) “Healing Ourselves, Healing our Economy: paid work, unpaid wor, and the next stage of feminist economic transformation,” Review of Radical Political Economics, 33(4): 461-94.
Hahnel, R. (2005) “Economics Justice,” Review of Radical Political Economics, 37(2): 131-54.
McDermott, J. F. M. (2007) “Future Time in Microeconomics: an alternative approach to its study,” Review of Radical Political Economics, 39(4): 503-522.
McDonough, T. (2008) “Social Structures of Accumulation Theory: the state of the art,” Review of Radical Political Economics, 40(2): 153-74. taken
Lavoie, M. (2006) “”Do Heterodox Theories Have Anything in Common? A Post-Keynesian point of view,” Intervention: Journal of Economics, 3(1): 87-112. taken
O’Hara, P. A. (2007) “”Heterodox Political Economy Specialization and Interconnection – Concepts of Contradiction, Heterogeneous Agents, Uneven Development,” Intervention: Journal of Economics, 4(1): 99-120. taken
Davis, J. B. (2006) “The Turn in Economics: neoclassical dominance to mainstream pluralism?” Journal of Institutional Economics, 2(1): 1-20. taken
Harvey, J. T. and Garnett, R. F. (2007) Future Directions for Heterodox Economics, Ann Arbor: The University of Michigan Press. taken
Boisvert, V. and Caron, A. (2002) “The Convention on Biological Diversity: an Institutionalist perspective of the debates,” Journal of Economic Issues, 36(1): 151-66.
Beckert, J. (2003) “Economic Sociology and Embeddedness,” Journal of Economic Issues, 37(3): 769-788.
Rodrigues, J. (2004) “Endogenous Preferences and Embeddedness,” Journal of Economic Issues 38(1): 189-200.
Villena, M. G. and Villena, M. J. (2004) “Evolutionary Game Theory and Thorstein Veblen’s Evolutionary Economics,” Journal of Economics Issues, 38(3): 585-610.
Altman, M. (2005) “Behavioral Economics, Power, Rational Inefficiences, Fuzzy Sets, and Public Policy,” Journal of Economic Issues, 39(3): 683-706.
Ferrari-Filho, F. et. al. (2005) “The Concept of Uncertainty in Post Keynesian Theory and in Institutional Economics,” Journal of Economic Issues, 39(3): 579-94.
Steiger, O. (2006) “Property Economics versus New Institutional Economics,” Journal of Economic Issues 40(1): 182-208.
Poster, J. (2006) “Why is Economics not a Compex Systems Science?” Journal of Economic Issues, 40(4): 1069-1092.
O’Hara, P. A. (2007) “Principles of Institutional-Evolutionary Political Economy – Converging Themes from the Schools of Heterodoxy,” Journal of Economic Issues, 41(1): 1-42.
Mavroudeas, S. D. (2006) “A History of Contemporary Political Economy and Postmodernism,” Review of Radical Political Economics, 38(4): 499-518.
Ankarloo, D. (2002) “New Institutional Economics and Economic History,” Capital and Class, 78: 9-38. taken
Evans, T. (2004) “Marxian and Post-Keynesian Theories of Finance and the Business Cycle,” Capital and Class, 83: 47-100.
Magnuson, J. (2008) Mindful Economics: How the US Economy Works, Why it Matters, and How it Could be Different enstories.com/book/?GCOI=58322100497410
www.mindfuleconomics.com
Werner, R.A. (2005). New Paradigm in Macroeconomics: Solving the Riddle of Japanese Macroeconomic Performance. Basingstoke: Palgrave Macmillan. (for some details see: grave.com/products/title.aspx?PID=268353).
Rethinking Trade Regimes
Globalization is at the root of all these questions, since it is simultaneously a growth factor and source of social differentiation within societies, a means for economies of scale and an ever-greater wedge driven between producers and consumers, with everything that the latter implies in terms of distinct relations and transportation costs. But are the “relocation” of trade and a return to protectionism the answer? This seems unlikely. Is there not then any new way of depicting the problem? Since no society-wide issue can be dealt with on one level only, can we not begin to consider the economy in the same terms we use to describe how governance is exercised at different levels, from local to global? How then can we consider the rules of the game of production and trade in a way that helps us avoid the current dichotomy between the autarchy of closed borders and unbounded insertion in an undifferentiated world market? Is this the right path to take? How should it be conceived? How should it be structured? To what final ends?
Review Material
Financial sector reforms and choices for developing countries ; An agenda for financial system reform ; Reignited Debate on Regulation of Hedge Funds ; Private equity: Pecuniary logic and enterprise restructuring ; Basel 2 at a Time of Financial Peril
by Andrew Cornford
Lucarelli, B. (2004) ‘European Monetary Union: a neo-liberal Trojan horse?’ Contributions to Political Economy, 23: 81-91.
‘Special Issue on Globalisation and Governance,’ Contributions to Political Economy, (2005) vol. 24.
Weller, C. E. and Hersh, A. (2004) “The Long and Short of It: global liberalization and the incomes of the poor,” Journal of Post Keynesian Economics, 26(3): 471-504. taken
Special Issue on the Washington Consensus, (2004-5) Journal of Post Keynesian Economics, 27(2).
Perraton, J. (2001) “The Global Economy—myths and realities,” Cambridge Journal of Economics, 25(5): 669-684. taken
Thomas, N. H. (2007) “ Global Capitalism, the Anti-Globalisation Movement and the Third World,” Capital and Class, 92:45-80. taken
Rethinking the Regulation of Goods and Services
Today, the market represents the privileged mode of regulating production and trade. Indeed, recent years have witnessed a vast increase in the spheres in which markets operate, reaching domains as diverse as public services and healthcare etc. However, it is doubtful that the same modes of production, distribution and consumption can or should be applied to things as different as biodiversity, natural resources, industrial goods, human services, culture, knowledge, health and transport. The very real efficiencies of markets for certain goods are not, to say the least, always realized for others. Therefore, what should we do? Should we limit ourselves solely to making up for inefficiencies with mechanisms like taxation and rationing applied to certain goods and services? Instead, do we not need mechanisms of production, distribution and consumption that are tailored to the specific nature of each good? And can we imagine new modes of regulation that work in tandem with these specific natures?
Review Material
Atkinson, G., Nichols, M., and Oleson, T. (2000) “The Menace of Competition and Gambling Deregulation.” Journal of Economic Issues 34.3:621-634.
Frank Ackerman and Lisa Heinzerling, Priceless: On Knowing the Price of Everything and the Value of Nothing (The New Press, 2004).
Hutton, Alan. (2005) “Economics, Competitive Markets, Switching & the Consumer Interest in Utilities and Public Services.”
Gajewski, Gregory, Ihara, Miho, and Tornieri, Francesco. “Socially Inclusive and Gender-Responsive Transport Projects - A Case Study o f the Timor-Leste Road Sector Improvement Project" Asian Development Bank. November 2007.
Gajewski, Gregory, Moldovan, Sonia, and Claire Yezer. “How War, a Tribal Social Structure, and Donor Efforts Shape Institutional Change in Afghanistan: A Case Study of the Roads Sector” Presented at the 2007 Conference European Association for Evolutionary Political Economy. Porto, Portugal November 1-3, 2007.
Moldovan, Sonia. “Private Sector Participation and Challenges in Afghanistan’s Transport Sector” Symposium EAEPA in collaboration with PRESOM/EU on Privatization and Regulations of Core Transactions in Physical Infrastructure, June 2007.
Gajewski, Gregory, Bathiche, Tanya, and Wilczewski, Kim. A New Infrastructure-Led Regional Development Approach to Promote More Equitable Globalization in Asia, March 2007.
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Stein, Howard Beyond the World Bank Agenda: An Institutional Approach to Development. Chapter 5. (University of Chicago Press, 2008). taken
Evans, J., Orszag, M. and Piggott, J. (eds) (2008), Pension Fund Goverance: a global perspective on financial regulation, Cheltenham: Elgar.
Kirkpatrick, C. and Parker, D. (eds) (2007) Regulatory Impact Assessment: towards better regulation?, Cheltenham: Elgar.
Crew, M. A. and Kleindorfer, P. R. (eds) (2008) Competition and Regulation in the Postal and Delivery Sector, Cheltenham: Elgar.
Hodge, G., Bowman, D., and Ludlow, K. (eds) (2007) New Global Frontiers in Regulation: the age of nanotechnology, Cheltenham: Elgar.
Rethinking the Role of Currency and Finance
Currency is the essential means of trade, simultaneously an accounting measure, a means of exchange, a benchmark of value and a vehicle for investment. The US dollar remains today the reference-point currency for the international monetary system. This situation is the source of two contradictions. Firstly, the world economy is regulated in an unstable fashion by a currency tied to national interests, lending new relevance to the idea Keynes supported as of 1944 of a "single international currency." Secondly, a single benchmark of value is used to measure the consumption of goods and services, but without respect to the labor and natural resources used in their production. As research into better ways of associating these different levels of exchange has progressed, new kinds of currencies have appeared, including for instance "parallel," "social," and "complementary" currencies, which are attempting to resolve this contradiction. Is it not time to confront this issue head-on, and to rethink the idea of currency in such a way that it becomes a tool adapted to actual economic modes of production and trade?
Review Material
Arestis, P. and Sawyer, M.C. (eds) (2006) A Handbook of Alternative Monetary Economics, Northampton: Edward Elgar.
Bank of International Settlements (2007) 77 th Annual Report, Geneva: Bank of International Settlements.
Bell, S.A. (2001) “The role of the state and the hierarchy of money,” Cambridge Journal of Economics, 25 (2): 149-163.
Bell-Kelton, S.A. (2006) “Behind closed doors: The political economy of central banking in the United States,” International Journal of Political Economy, 35 (1): 5-23.
Bellofiore, R. and Ferri, P. (eds) (2001) Financial Fragility and Investment in the Capitalist Economy, 33-52, Cheltenham: Edward Elgar.
Brossard, O. (2001) D’un Krach à l’Autre: Instabilité et Régulation des Economies Monétaires, Paris: Editions Grasset & Fasquelle/Le Monde de l’Education.
Cohen, C.J. (2001) “Electronic money: new day or false dawn?” Review of International Political Economy 8 (2): 197–225
Crow, J. (2002) Making Money: An Insider’s Perspective on Finance, Politics and Canada’s Central Bank, Etobicoke: John Wiley & Sons Canada.
Dalziel, P. (2001) Money, Credit, and Price Stability, London: Routledge.
Davidson, P. (2002) Financial Markets, Money, and the Real World, Northampton: Edward Elgar.
Ertuk, K.A. (2006a) “Asset price bubble, liquidity preference and the business cycle,” Metroeconomica, 57 (2): 239-256.
Forstater, M. 2006. “Tax-Driven Money: Additional Evidence from the History of Thought, Economic History, and Economic Policy.” In Setterfield, M. (ed.) Complexity, Endogenous Money And Macroeconomic Theory. Cheltenham: Edward Elgar.