The theory of global imbalances: mainstream economics vs structural Keynesianism

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractPrior to the 2008 financial crisis there was much debate about global trade imbalances. Prima facie, the imbalances seem a significant problem. However, acknowledging that would question mainstream economics' celebratory stance toward globalization. That tension prompted an array of explanations which explained the imbalances while retaining the claim that globalization is socially beneficial. This paper surveys those new theories. It contrasts them with the structural Keynesian explanation that views the imbalances as an inevitable consequence of neoliberal globalization. The paper also describes how globalization created a political economy that supported the system despite its proclivity to generate trade imbalances. Prior to the 2008 financial crisis there was much debate about global trade imbalances. Prima facie, the imbalances seem a significant problem. However, acknowledging that would question mainstream economics' celebratory stance toward globalization. That tension prompted an array of explanations which explained the imbalances while retaining the claim that globalization is socially beneficial. This paper surveys those new theories. It contrasts them with the structural Keynesian explanation that views the imbalances as an inevitable consequence of neoliberal globalization. The paper also describes how globalization created a political economy that supported the system despite its proclivity to generate trade imbalances.

Instabilidade financeira em países em desenvolvimento: uma análise intersetorial

“…A especialização das estruturas produtivas dos PEDs em setores de menor densidade tecnológica, cuja demanda depende dos ciclos nos países avançados, contribui para que estes possuam menor capacidade de geração endógena de progresso técnico, de redução de sua heterogeneidade estrutural e de seu grau de vulnerabilidade externa. Num contexto em que os modos de produção são altamente conectados internacionalmente, por meio de cadeias globais de valores, este argumento segue válido, à medida que as etapas de maior valor agregado permanecem concentradas nos centros de decisão das empresas internacionalmente ativas e o diferencial dos países de menor grau de desenvolvimento se concentra suas características de custos locacionais, em especial ligadas ao custo do trabalho, como descrito por Baldwin et al (2014), Palley (2014) e por Arbache (2013).…”

Tawhid and Shariah Economics: Positioning Tauhid as Philosophical Foundation of Shariah Economics

“…Additionally, according to Palley (2014), the global imbalances explained by the new economic theories of the structural Keynesian as an inevitable impact consequence of the model of neoliberal towards globalization. The explanation of structural Keynesian theory on two sides, the dimension of supply and demand side tend towards the problem of global economic imbalance.…”

Tawhidic Based Economic System: A Preliminary Conception

“…Additionally, according to Palley (2014) the global imbalances explained by the new economic theories of the structural Keynesian as an inevitable impact consequence of the model of neoliberal towards to globalization. The explanation of structural Keynesian theory on two sides, the dimension of supply and demand side tend towards the problem of global economic imbalance.…”

“…[see Hodgson, (2009)]. The explanation of how policy accommodated the urgent of these new global supply and demand arrangements by the involving of the political economy (Palley, 2014).…”