The state spends first: Logic, facts, fictions, open questions

Cesaratto, Sergio

doi:10.1080/01603477.2016.1147333

Cited by 24 publications

(12 citation statements)

References 41 publications

(26 reference statements)

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“…We are therefore left with autonomous consumption, government spending, and exports as components of final demand. These components are ultimately all financed by credit/money creation by banks (Cesaratto, 2016(Cesaratto, , 2017a.…”

Section: Issues Left Open By Garegnanimentioning

confidence: 99%

Garegnani, Ackley and the years of high theory at Svimez

Cesaratto¹

2020

Economic Growth and Macroeconomic Stabilization Policies in Post-Keynesian Economics

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In the late 1950s, Svimez was an influential research centre on Italian economic and regional policies. It was advised and visited by top international development experts and by leading Italian economists. Pierangelo Garegnani, fresh from his seminal Ph.D. thesis on capital theory at Cambridge, wrote a report for Svimez, published in 1962, on the relevance of Keynes' theory for economies at an intermediate stage of development, like Italy. Interestingly, in 1963 Gardner Ackley published a similar report for Svimez. The theoretical parts of Garegnani's report were published in English in 1978-79 and 2015. In a final applied section, which has not yet been published, Garegnani estimates that a fuller utilisation of productive capacity would have allowed for the creation of 550 thousand additional jobs without problems relating to the balance of payments. In this section, Garegnani also raises several interesting theoretical issues. Ackley's report is an econometric explanation of the Italian 'economic miracle' based on a demand-led growth supermultiplier modela theoretical approach rediscovered by Bortis and Serrano, and recently taken up by Marc Lavoie and others. A comparison between these two genuine Keynesian approaches looks very promising.

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Section: Issues Left Open By Garegnanimentioning

confidence: 99%

Garegnani, Ackley and the years of high theory at Svimez

Cesaratto¹

2020

Economic Growth and Macroeconomic Stabilization Policies in Post-Keynesian Economics

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“…Lavoie (), among others (see in particular Gnos and Rochon, ), is sceptical of certain simplifications adopted by Chartalists—namely the consolidation of Treasury and central bank (CB)—and propose an alternative ‘post‐Chartalist’ institutional mechanism more respectful of the ban, in most institutional set ups, of CBs directly funding the Treasury. With some reservations, Wray () does not reject this view (the debate is explored in a parallel paper, Cesaratto ).…”

Section: Real and Monetary Aspects Of The Classical‐keynesian Approachmentioning

confidence: 99%

“…A flexible picture of the mainstream view can also be adopted in the case of autonomous consumption, exports, and even of government spending (see Cesaratto, ). Autonomous consumption can be rationalised, for instance, as an equilibrium phenomenon in which there are rational heterogeneous households at different stages of their life‐cycles, so that presently thrifty households lend resources to temporarily profligate households at some equilibrium interest rate.…”

Section: Real and Monetary Aspects Of The Classical‐keynesian Approachmentioning

confidence: 99%

Initial and Final Finance in the Monetary Circuit and the Theory of Effective Demand

Cesaratto

2016

Metroeconomica

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One remarkable aspect of modern heterodox theory is the detachment between demand‐led growth models and endogenous money theories. This paper suggests a possible integration of the Keynesian theory of the multiplier (and supermultiplier) with endogenous money and Keynes's finance theories. Focussing upon Graziani's version of the Monetary Circuit Theory (MCT), the paper is a contribution towards reconciling the preoccupation of MCT with initial production financing, and the concern of demand‐side oriented heterodox growth theories with final financing of autonomous demand. Following Davidson, Dalziel and others, the paper shows that endogenous money finances production decisions based, inter alia, on expected consumption and investment orders. In turn, the income (super)multiplier generates actual consumption and saving. The latter funds the actual purchase of investment goods. The (super)multiplier is the nexus between initial and final finance. Various complications of this basic idea not yet considered by the literature are examined.

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“…Es decir, puede admitir que los "fondos prestables" no son el resultado del recaudo de ahorros ex ante por los bancos sino de la creación de poder de compra por los bancos. De manera similar, en la macroeconomía convencional reciente la cantidad de dinero es endógena en el sentido de que el bc primero fija la tasa de interés (intentando acercarla al nivel natural), y dada la demanda de dinero, deja que la oferta monetaria (endógena) se ajuste para obtener la tasa objetivo 13 . La sustancia no es, sin embargo, diferente de la del enfoque del dinero exógeno: se presta atención a la tasa de interés natural, la tasa a la cual la inversión es igual a la capacidad-ahorro de pleno empleo (Bougrine y Seccareccia, 2004) 14 .…”

Section: El Dinero Endógeno Y La Teoría Marginalistaunclassified

La financiación inicial y final en el circuito monetario y la teoría de la demanda efectiva

Cesaratto

2016

ecoins

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Un aspecto notable de la teoría heterodoxa moderna es la separación entre los modelos de crecimiento basados en la demanda y las teorías del dinero endógeno. Este artículo sugiere una posible integración entre la teoría keynesiana del multiplicador (y el supermultiplicador) y las teorías del dinero endógeno y la financiación de Keynes. Centrándose en la versión de la teoría del circuito monetario (TCM) de Graziani, es una contribución para reconciliar la preocupación de la tcm por la financiación inicial de la producción y la preocupación de las teorías del crecimiento heterodoxas orientadas a la demanda por el financiamiento final de la demanda autónoma.

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The state spends first: Logic, facts, fictions, open questions

Cited by 24 publications

References 41 publications

Garegnani, Ackley and the years of high theory at Svimez

Garegnani, Ackley and the years of high theory at Svimez

Initial and Final Finance in the Monetary Circuit and the Theory of Effective Demand

La financiación inicial y final en el circuito monetario y la teoría de la demanda efectiva

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