Research Network Macroeconomics and Macroeconomic Policies

Summer School ‚Keynesian Macroeconomics and European Economic Policies’ 27 July – 3 August 2008, Berlin

Location: IG Metall Bildungsstätte Berlin-Pichelssee More information on the location (in German only): http://www2.igmetall.de/homepages/bs-berlin/tagungshotel.html

Research Network Macroeconomics and Macroeconomic Policies

Summer School ‚Keynesian Macroeconomics and European Economic Policies’ 27 July – 3 August 2008, Berlin

Post-Keynesian economics is a thriving economic approach which highlights issues of effective demand, income distribution, employment and growth in a monetary production economy. Most of the features of a monetary production economy are usually neglected in mainstream eco-nomics and its “free market”-orientation. During the recent decades, economic policies based on this mainstream approach have contributed to high unemployment, worsening income distribu-tion and increasing economic imbalances. Developing alternative policy proposals will therefore need a firm theoretical foundation. The summer school aims at providing an introduction to Post-Keynesian economics and to the problems of European economic policies as well as present-ing some ongoing research to interested graduate students (MA and PhD) and junior researchers.

The summer school will consist of overview lectures, student study groups and academic papers. It will feature leading international researchers in the area, like Marc Lavoie (Canada), Amitava Dutt, James Crotty, David Howell (all USA), and Philip Arestis (UK). Issues of monetary eco-nomics, the theory of growth and distribution, and the relation of Post-Keynesian Economics to other heterodox traditions, but also to the now prevalent New Keynesian approach, will be cov-ered as well as applications of Keynesian theory to issues of unemployment, monetary policy and macroeconomic policy coordination in the EU.

Language: English

Costs: There is a fee of € 250,- for each participant for accommodation and meals. Travelling costs cannot be covered.

Application: Send a letter of motivation (max. 2 pages), your CV and the address of one aca-demic adviser who may be contacted for reference to torsten-niechoj@boeckler.de no later than 31 March, 2008. Accepted participants will be informed by the end of April 2008 and will be provided with a reading package for the Summer School.

For detailed information and updates on the summer school see: http://www.boeckler.de/cps/rde/xchg/hbs/hs.xsl/33_89470.html

For more information contact the local organisers: Eckhard Hein, Macroeconomic Policy Institute (IMK), Hans Boeckler Foundation (eckhard-hein@boeckler.de) Torsten Niechoj, Macroeconomic Policy Institute (IMK), Hans Boeckler Foundation (torsten-niechoj@boeckler.de) and Engelbert Stockhammer, Vienna University of Economics and Business Administration (engelbert.stockhammer@wu-wien.ac.at)

For more information on the Research Network Macroeconomic Policies see: http://www.boeckler.de/cps/rde/xchg/hbs/hs.xsl/36176_36330.html

Programme of the Summer School

Sunday, 27 July 2008 Monday, 28 July 2008 Tuesday, 29 July 2008 Wednesday, 30 July 2008 Thursday, 31 July 2008 Friday, 1 August 2008 Saturday, 2 August 2008

Money, Credit and Finance Marc Lavoie, University of Ottawa

Growth and Income Distribution Amitava Dutt, University of Notre Dame

Marx, Keynes and Schumpeter and Global Neoliberal Capitalism James Crotty, University of Massachusetts at Am-herst

Do Labor Market Rigidi-ties Explain the Post- -1970s Pattern of OECD Unenmployment? David Howell, New School University, New York

Keynesian Economics and the New Keynesian/ New Consensus Schools of Thought Philip Arestis, University of Cambridge

Economic Theory and Macroeconomic Policies in the EMU Philip Arestis, University of Cambridge

9.30–12.30

Lunch Lunch Lunch Lunch Lunch Lunch 13–14

12–14.30 Check in

Study group on Money, Credit and Finance

Study group on Distribution and Growth

Study group on Keynesian, Classical and Marxian Eco-nomics: A Coherent Post-Keynesian Research Pro-gramme?

Study group on Labour Market, Macroeconomic Policies and Unemployment

Study group on Post-Keynesian Macroeconomics and its New Keynesian/New Consensus Cousins

Study group on Economic Problems and Macroeco-nomic Policy Coordination in the Enlarging EU

14–16.30

15–19.00

Introduction: History and Method of Post-Keynesian Macroeco-nomics Marc Lavoie, Univer-sity of Ottawa

Marc Lavoie: A Simple Stock-flow Consistent Model With Portfolio Choice and a Government Sector.

Peter Spahn: New Keynesian Macroeconomics and Mone-tary Targeting

Amitava Dutt: Conspicuous Consumption, Growth and Distribution Marc Lavoie: Cadrisme Within a Post-Keynesian Model of Growth and Dis-tribution

Engelbert Stockhammer: On the Empirics of Distribution and Growth

James Crotty: What Does the Recent Financial Crisis Tell Us About the Strengths and Weakness of Competing Theories of Financial Mar-kets?

Trevor Evans: Marxian and Post-Keynesian Theories of Finance and the Business Cycle

David Howell: Individual Incentives and Aggregate Employment Performance: Unemployment Generosity and the Unemployment Rate

Özlem Onaran: Globaliza-tion and Labour in the North, East and South. A Political Economy Ap-proach

Eckhard Hein, Engelbert Stockhammer: Macroeco-nomic Policy Mix, Employ-ment and Inflation in a Post-Keynesian Alternative to the New Consensus Model

Sebastian Dullien: The New Consensus from a Post-Keynesian Perspective: Pro-gress by the Mainstream or a Trojan Horse for New Clas-sical Economics?

Philip Arestis: Assessing UK Monetary Policy, Part I & II

Hansjörg Herr: Wages and Economic Coherence in the Enlarging EU

17–19.00

Dinner Dinner Dinner Dinner Dinner Dinner Dinner 19–20

Wages in Open Economies – The European Disaster Heiner Flassbeck, UNCTAD

20–22.00

Lecture, study group, academic papers, after dinner lecture Departure: Sunday

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Sunday, 27 July 2008 History and Method of Post-Keynesian Macroeconomics Lecture INTRODUCTION: HISTORY AND METHOD OF POST-KEYNESIAN MACROECONOMICS Marc Lavoie, University of Ottawa Outline This lecture can be divided into seven themes. 1. We set post-Keynesian economics within a set of multiple heterodox schools of thought, in opposition to mainstream schools. 2. We go over a brief history of post-Keynesian economics, in particular its founding moments. 3. We identify the main features (presuppositions) of heterodoxy, contrasting them to those of orthodoxy. 4. We identify the additional features that characterize post-Keynesian economics relative to closely-related heterodox schools. 5. We delineate the various streams of post-Keynesian economics: Fundamentalism, Kaleckian, Kaldorian, Sraffian, Institutionalist. 6. We attempt to show how modern writers are linked to those various streams and to the “founding fathers”. 7. We go over some of the methodological debates that have rocked post-Keynesian economics over the last ten years. Required Readings Arestis, P. “Post-Keynesian economics: towards coherence”, Cambridge Journal of Economics,

January 1996, 20 (11), 111-135. Pasinetti, L.L. “The Cambridge school of Keynesian economics”,Cambridge Journal of Economics,

November 2005, 29 (6), 837-848. Lavoie, M. “Do heterodox theories have anything in common? A Post-Keynesian point of view”,

Intervention, 2006, 3 (1), 87-112. King, J.E. “Post-Keynesian political economy: history”, in P.A. O’Hara (ed.), Encyclopedia of

Political Economy, vol.2, Routlege, 1999, 880-883. Suggested Readings Arestis, P., S.P. Dunn, and M. Sawyer, “Post Keynesian economics and its critics”, Journal of Post

Keynesian Economics, Summer 1999, 21 (4), 527-550. Bortis, Heinrich, Institutions, Behaviour and Economic Theory, Cambridge University Press, 1997. Chick, V. “Is there a case for Post Keynesian economics?”, Scottish Journal of Political Economy, February

1995, 42 (1), 20-36. Dow, S.C. “Post Keynesian methodology”, in R.P.F. Holt and S. Pressman (edsd), A New Guide to Post

Keynesian Economics, Routledge, 2001, pp. 11-20. Dunn, S.P. “Whither Post Keynesianism?”, Journal of Post Keynesian Economics, Spring 2000, 22 (3), 343-

364. Dutt, A. “On Post Walrasian economics, macroeconomic policy, and heterodox economics”, International

Journal of Political Economy, Summer 2003, 33 (2), 47-67. Fontana, G. and B. Gerrard, “The Future of Post Keynesianism”, Banca Nazionale del Lavoro Quarterly

Review, Mach 2006, 59 (236), 46-80. Hamouda, O. and G.C. Harcourt, “Post-Keynesianism: From criticism to coherence?”, Bulletin of

Economic Research, January 1988, 40 (1), 1-33.

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Harcourt, G.C., The Structure of Post-Keynesian Economics: The Core Contributions of the Pioneers, Cambridge University Press, 2006.

King, John E., A History of Post Keynesian Economics Since 1936, Edward Elgar, 2003. Lavoie, Marc, An Introduction to Post-Keynesian Economics. Palgrave/Macmillan, 2006. Lawson, T. “The nature of Post Keynesianism and its links to other traditions”, Jornal of Post Keynesian

Economics, Summer 1994, 16 (4), 503-538. Walters, B. and D. Young, “On the Coherence of Post-Keynesian Economics”, Scottish Journal of Political

Economy, August 1997, 44 (3), 329-349.

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Monday, 28 July 2008 Money, Credit and Finance Lecture MONEY, CREDIT AND FINANCE Marc Lavoie, University of Ottawa Outline This lecture has several objectives. 1. We define the main claims of the post-Keynesian views on money, credit and finance, namely a demand-led money supply, the impossibility of pursuing monetary targets, reversed causality, and multiple natural rates of interest. 2. We show that post-Keynesian monetary economics has a long history, that goes back to the Banking School and Thomas Tooke, and which can also be linked to the distinction, made by Schumpeter, between real and monetary analysis. 3. We look at some of the heterodox schools in post-Keynesian monetary economics, in particular the place of circuit theory and the neo-chartalist school. 4. We survey the controversies that arose, mainly in the 1990s, between the so-called horizontalist and structuralist views, and which are tied up with Minsky’s financial fragility hypothesis. 5. We survey new developments in monetary policy implementation by central banks, and their implications for monetary theory. 6. We discuss open-economy monetary economics. 7. We discuss how post-Keynesian monetary economics has been integrated to post-Keynesian macroeconomics (a) in growth and distribution models; (b) through the stock-flow consistent approach (SFC) tied to flow-of-funds analysis. Required Readings Fullwiler, S.T. “Timeliness and the Fed’s daily tactics”, Journal of Economic Issues, December

2003, 37 (4), 851-880. Humphrey, T.M. “Kaldor versus Friedman in historical perspective”, in W.J. Barber (ed.),

Perspectives on the History of Economic Thought, vol. V, Themes in Pre-Classical, Classical and Marxian Economics, Edward Elgar, 1991, 91-104.

Lavoie, M. “Horizontalism, Structuralism, liquidity preference and the principle of increasing risk”, Scottish Journal of Political Economy, August 1996, 43 (3), 275-301.

Suggested Readings Arestis, P. and M. Sawyer (eds), A Handbook of Alternative Monetary Economics, Edward Elgar, 2006. Godley, W. and M. Lavoie, Monetary Economics: An Integrated Approach to Credit, Money, Income,

Production and Wealth, Palgrave/Macmillan, 2007. Hein, E., “Interest, debt and capital accumulation – a Kaleckian approach”, International Review of

Applied Economics, July 2006, 20 (3), 337-352. Kaldor, N. The Scourge of Monetarism, Oxford University Press, 1982. M. Lavoie, «Interest parity, risk premia and Post Keynesian analysis», Journal of Post Keynesian Economics,

vol. 25, no. 2, Winter 2002-2003, 237-249. Lavoie, M. “A primer on endogenous money”, in L. P. Rochon and S. Rossi (eds), Modern Theories of

Money: The Nature and Role of Money in Capitalist Economies, Edward Elgar, 2003. Rochon, L.P. Credit, Money and Production: An Alternative Post-Keynesian Approach, Edward Elgar,

Cheltenham, 2000.

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Smithin, J. Controversies in Monetary Economics: Ideas, Issues and Policy,: Edward Elgar, 1994. Wolfson, M. “A Post Keynesian theory of credit rationing”, Journal of Post Keynesian Economics, Spring

1996, 18 (3), 443-470. Wray, L.R. Understanding Modern Money, Edward Elgar, 1998.

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Tuesday, 29 July 2008 Distribution and Growth Lecture GROWTH AND INCOME DISTRIBUTION Amitava Krishna Dutt, University of Notre Dame Outline This lecture will examine the interrelation between growth and income distribution in theoretical terms and discuss some of the implications of these theories for understanding trends in the real world. 1. It will start with a general discussion of different concepts of income distribution and examine different kinds and sources of interaction between income distribution and the rate of growth of the economy. It will argue that the relationship between growth and income distribution is a complex one, and depends on the specific characteristics of the economy being considered. 2. To illustrate the existence of different types of interaction in different contexts it will examine some models of growth and distribution which are developed from a simple common framework. The models that will be examined will include neoclassical, neo-Marxian, neo-Keynesian and post-Keynesian ones. 3. It will then discuss whether there are grounds for choosing one kind of model over another. It will discuss the main theoretical arguments and empirical regularities which try to argue in favor of the different theories and argue that each of the models may have some relevance in certain contexts. 4. It will then examine more carefully the implications of post Keynesian models of growth and income distribution, relaxing some of the simple assumptions made in the common framework It will examine, in particular, implications of different kinds of investment functions and financial markets, as well as for multi-sector economies and open economies. 5. It will conclude by briefly discussing some of the major trends in the real world, and examining the extent to which the models can help in understanding these trends. Required Readings Dutt, Amitava K. (1990). Growth, distribution and uneven development, Cambridge University

Press, chap. 2. Dutt, Amitava K. (1992).“Conflict inflation, distribution, cyclical accumulation and crises”,

European Journal of Political Economy, 8, 579-97. Dutt, Amitava K. (2006). ‘Aggregate demand, aggregate supply and economic growth’,

International Review of Applied Economics, 20(3), July, 319-336. Suggested Readings Kaldor, Nicholas (1955-56). “Alternative Theories of Distribution”, Review of Economic Studies, 1955-6,

repr. in N. Kaldor, Essays on Economic Stability and Growth, Duckworth, 1960.

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Pasinetti, Luigi (1962). “Rate of Profit and income distribution in relation to the rate of growth”, Review of Economic Studies, repr. in L. Pasinetti, Growth and Income Distribution, Cambridge University Press, 1974.

Robinson, Joan (1962). Essays in the Theory of Economic Growth, Macmillan, Chap. 2. Dutt, Amitava K. (1984). “Stagnation, income distribution and monopoly power”, Cambridge Journal of

Economics, March, 8, 25-40. Dutt, Amitava K. (1990). Growth, Distribution and Uneven development, Cambridge: Cambridge

University Press, 1990, chaps. 3-5. Taylor, Lance (1991). Income distribution, inflation and growth, MIT Press, Chaps. 2, 3, 5, 6, 9 Bhaduri, Amit and Marglin, Stephen “Unemployment and the real wage”, Cambridge Journal of

Economics, 14(4), 1990. Dutt, Amitava K. (1992).“Conflict inflation, distribution, cyclical accumulation and crises”, European

Journal of Political Economy, 8, 579-97. You, Jong-Il and A. K. Dutt, Amitava K. ‘Government debt, income distribution and growth’, Cambridge

Journal of Economics, Vol. 20, No. 3, May 1996, 335-51. Dutt, Amitava K. (2006). ‘Aggregate demand, aggregate supply and economic growth’, International

Review of Applied Economics, 20(3), July, 319-336. Blecker, Robert (1989). "International competition, income distribution and economic growth",

Cambridge Journal of Economics, 13(3), September, 395-412. Taylor, Lance (2004). Reconstructing macroeconomics, Cambridge: Harvard University Press, chaps. 2, 3, 4,

7.

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Wednesday, 30 July 2008 Keynesian, Classical and Marxian Economics: A Coherent Post-Keynesian Research Programme? Lecture MARX, KEYNES AND SCHUMPETER AND GLOBAL NEOLIBERAL CAPITALISM James Crotty, University of Massachusetts at Amherst Outline Marx and Keynes are generally believed to hold starkly conflicting theories of capitalist economic dynamics. In my opinion, this view is not properly balanced: though their perspectives on capitalist dynamic are distinct, they have far more in common than is normally understood. Post Keynesian Economics should incorporate the theoretical insights of both great economists. This session will begin with a comparison and contrast of Marxian and Keynesian visions of capitalist dynamics. Topics will include: the impact of uncertainty on macro theory; the nature of money and financial markets; sources of instability and theories of crisis; and the role of the state in capitalism. It will then proceed to address crucial questions about the nature of global neoliberalism using insights from both theorists as well as from Schumpeter’s innovative theory of competition in industries with large economies of scale and scope. These questions include: what caused the transition from the “Golden Age” to the neoliberal era?; what are the structural contradiction of global neoliberal capitalism that generate the problems associated with it?; what is the nature of the new global financial system and what are its effects on the performance of nonfinancial corporations? We will conclude with a discussion of a research agenda to help further our understanding of today’s global capitalism and thereby assist in the effort to develop policy proposals adequate to improve the economic condition of the majority of the world’s people. Required Readings Crotty, J. "The Centrality of Money, Credit and Financial Intermediation in Marx's Crisis

Theory." In S. Resnick and R. Wolff, eds., Rethinking Marxism: Essays in Honor of Harry Magdoff and Paul Sweezy. New York: Autonomedia, 1985, pp. 45-82.

Crotty, J. “Core Industries, Coercive Competition and the Structural Contradictions of Global Neoliberalism.” In N. Phelps and P. Raines, eds., The New Competition for Inward Investment: Companies, Institutions and Territorial Development. Northampton Massachusetts: Edward Elgar, 2003, pp.9-38.

Crotty, J. “The Neoliberal Paradox: The Impact of Destructive Product Market Competition and ‘Modern’ Financial Markets on Nonfinancial Corporation Performance in the Neoliberal Era.” In Gerald Epstein, ed., Financializaton and the World Economy. Northampton Massachusetts: Edward Elgar, 2005, pp. 77-110.

Suggested Readings Crotty, J. "Are Keynesian Uncertainty and Macrotheory Incompatible? Conventional Decision Making,

Institutional Structures and Conditional Stability in Keynesian Macromodels." In G. Dymski and R. Pollin, eds., New Perspectives in Monetary Macroeconomics: Explorations in the Tradition of Hyman Minsky. Ann Arbor: Univ. of Michigan Press, 1994, pp. 105-142.

Crotty, J. "Rethinking Marxian Investment Theory: Keynes-Minsky Instability, Competitive Regime Shifts and Coerced Investment," Review of Radical Political Economics, 25(1), March 1993, pp. 1-26.

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Thursday, 31 July 2008 Labour Market, Macroeconomic Policies and Unemployment Lecture DO LABOR MARKET RIGIDITIES EXPLAIN THE POST-1970S PATTERN OF OECD UNEMPLOYMENT? David R. Howell, New School University, New York Outline 1. Mainstream Theory: Competitive Markets and Voluntary Unemployment 2. Post-Keynesian Theory: Imperfectly Competitive Markets and Involuntary Unemployment 3. Micro-foundations: Wage-Setting and Efficiency-Equality Tradeoffs 3.1 Can Labor Market Institutions be Efficiency-Enhancing? 3.2 Some Evidence 4. Unemployment and Institutions: The Basic Facts 5. Measurement Issues 5.1 Unemployment 5.2 Labor Market Institutions 6. Macroeconometric Evidence 6.1 Simple Correlations 6.3 Early Macroeconometric Evidence 6.4 The “State of the Art”: Explaining Changes over Time with Annual Data 6.5 Time Series Evidence from the UK 6.6 Comprehensive Labor Market Reform Indices and Unemployment (Nickell and the OECD) 7. Lessons from Country Case Studies 7.1 The Success Stories: Ireland, Denmark and the Netherlands 7.2 The Failure Stories: France and Germany (?) 7.3 Sweden 8. The Post-1979 Pattern of OECD Unemployment: Alternative Explanations 9. Policy Implications Required Readings Nickell, “Unemployment: Questions and Some Answers,” Economic Journal 108 (May); Agell, Jonas, “On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social

Insurance,” Economic Journal 109, F143-F164 (1999).

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Howell, David R. and Friedrich Huebler. 2005. “Wage Compression and the Unemployment Crisis: Labor Market Institutions, Skills, and Inequality-Unemployment Tradeoffs,” chapter 2 of Howell, ed. Fighting Unemployment: The Limits of Free Market Orthodoxy (Oxford University Press).

Howell, Baker, Glyn and Schmitt, “Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence,” Capitalism and Society, Vol. 2, Issue 1 (2007).

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Friday, 1 August 2008 Post-Keynesian Macro-economics and its New Keynesian/New Consensus Cousins Lecture KEYNESIAN ECONOMICS AND THE NEW KEYNESIAN/NEW CONSENSUS SCHOOLS OF THOUGHT Philip Arestis, University of Cambridge Outline - a short history of the emergence of the New Consensus school of thought: from the first neoclassical synthesis and Keynesian economics, to new classical macroeconomics and new Keynesian economics; this will produce the basis of explaining the emergence of the new consensus macroeconomics along with its policy implications; - discussion of the New Consensus: this part will concentrate on the basic relationships of the model and how they interact together to explain the determination of macroeconomic variables that are the focus of this school of thought; - assessing the new consensus macroeconomics framework: this will discuss the problematic areas of both the theoretical and empirical dimensions of the framework; - relationship between Keynesian economics and new Consensus macroeconomics: this part of the lecture will attempt to highlight the differences between these two schools of thought along with their policy implications. The apparent similarities will be highlighted and discussed and offer a rationale of their differences. Required Readings Arestis, P. (2007), “What is the new consensus in macroeconomics?, in P. Arestis (ed.), Is there a

new consensus in macroeconomics?, Basingstoke: Palgrave Macmillan Taylor, J.B. (1993), “Discretion Versus Policy Rules in Practice”, Carnegie-Rochester Conference

Series on Public Policy, December, 195-214. Clarida, R., Galí, J. and Gertler, M. (1999), “The Science of Monetary Policy: A New Keynesian

Perspective”, Journal of Economic Literature, 37(4), 1661-1707. Suggested Readings Arestis, P. (ed.) (2007), Is there a new consensus in macroeconomics?, Basingstoke: Palgrave Macmillan Angeriz, A. and Arestis, P. (2007), “Inflation targeting: assessing the evidence”, in J. McCombie and C.R.

Gonzales (eds.), Issues in Finance and Monetary Policy, Basingstoke: Palgrave Macmillan Bernanke, B.S., Laubach, T., Mishkin, F. and Posen, A. (1999), Inflation Targeting: Lessons from the

International Experience, Princeton: Princeton University Press

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Saturday, 2 August 2008 Economic Problems and Macroeconomic Policy Coordination in the Enlarging EU Lecture ECONOMIC THEORY AND MACROECONOMIC POLICIES IN THE EMU Philip Arestis, University of Cambridge Outline - theoretical underpinnings of the EMU model: this part of the course will concentrate on the theory that underpins the EMU model, along with its policy implications. It will be argued that the theory of the model is essentially the new consensus macroeconomics model and its policy implications. In this way this part of this lecture will draw heavily on the KEYNESIAN ECONOMICS AND THE NEW KEYNESIAN/NEW CONSENSUS SCHOOLS OF THOUGHT lecture; - assessing the theoretical framework of the EMU: this will concentrate on the problematic areas of the framework, along with the institutional set up that purports to support it; - current EMU macropolicies: monetary and fiscal policies: this follows logically from the first part of the lecture, and it will also assess the performance of the policies since the inception of the EMU in the late 1990s; - policy coordination in the EMU: the discussion of the second part of the course will conclude that the current arrangements for the EMU are problematic. A new set of policies is required and relevant suggestions will be offered. Underpinning this suggestion will be the coordination of the policies suggested in a coherent manner and way. Required Readings Arestis, P. and Sawyer, M. (2007), “Perspectives on economic policy in the Economic and

Monetary Union”, in E. Hein, J. Priewe and A. Truger (eds.), European Integration in Crisis, Marburg: Metropolis.

Bibow, J. (2002), “The Monetary Policies of the European Central Bank and the Euro’s (Mal-) Performance: A Stability Oriented Assessment”, International Review of Applied Economics, 16(1), 31-50.

European Central Bank (ECB) (1999), “The Institutional Framework of the European System of Central Banks”, Monthly Bulletin, July, pp. 55-63, Frankfurt: Germany.

Suggested Readings Arestis, P., Brown, A. and Sawyer, M. (2001), The euro: evolution and prospects, Cheltenham: Edward

Elgar Publishing. Arestis, P. and Sawyer, M. (2006), Alternative perspectives on economic policies in the European Union,

Basingstoke: Palgrave Macmillan. Bibow, J. (2003), “Is Europe Doomed to Stagnation? An Analysis of the Current Crisis and

Rocommendations for Reforming Macroeconomic Policymaking in Euroland”, Working Papers Series, No. 379, Levy Economics Institute of Bard College, (May).

Duisenberg, W.F. (1999), “Economic and Monetary Union in Europe: the Challenges Ahead”, in New Challenges for Monetary Policy, proceedings of A Symposium Sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming, August 26-28, pp. 185-194.

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The Summer School Lecturers Marc Lavoie is Professor in the Department of Economics at the University of Ottawa, where he started teaching in 1979. He has written a number of books, among which Foundations of Post-Keynesian Economic Analysis (1992), Introduction to Post-Keynesian Economics (2006), as well as Monetary Economics: An Integrated Approach to Money, Income, Production and Wealth (2007) with Wynne Godley. He has been the co-editor, with Mario Seccareccia, of a book on the works of Milton Friedman (1993) and of Central Banking in the Modern World: Alternative Perspectives (2004), as well as being an associate editor of the Encyclopedia of Political Economy (1999). Lavoie has been a visiting professor at the universities of Bordeaux, Nice, Rennes, Dijon, Grenoble, Limoges, Lille, Paris-Nord and Paris-1, as well as Curtin University in Perth (Australia). Amitava Krishna Dutt is Professor of Economics at the Department of Economics and Policy Studies. University of Notre Dame. He was educated at the University of Calcutta and the Massachusetts Institute of Technology. His areas of specialization are macroeconomic theory, development economics, international economics and political economy. His current research focuses on global uneven development and globalization, models of growth and distribution, consumption and happiness, and the political economy of war and peace. He is the author or editor of several books including Growth, Distribution and Uneven Development (Cambridge, 1990), and Development Economics and Structuralist Macroeconomics (coedited with J Ros, Edward Elgar, 2003) and the author of over 100 papers published in edited volumes and economics journals including American Economic Review, Cambridge Journal of Economics, Journal of Development Economics, Journal of Post Keynesian Economics, Oxford Economic Papers, Review of Radical Political Economics, and World Development. He is a coeditor of the international journal, Metroeconomica. James Crotty is Professor Emeritus and Sheridan Scholar in the Economics Department of the University of Massachusetts, Amherst campus. He has written widely on macro theory and policy, on the economics and policy perspective of Keynes, on Marxian theory and its applications to current problems, on financial markets, on global neoliberal capitalism, and on the political economy of South Korea. Publications of interest include: "Rethinking Marxian Investment Theory: Keynes-Minsky Instability, Competitive Regime Shifts and Coerced Investment," Review of Radical Political Economics, 25(1), March 1993, pp. 1-26; Are Keynesian Uncertainty and Macrotheory Incompatible? Conventional Decision Making, Institutional Structures and Conditional Stability in Keynesian Macromodels." In G. Dymski and R. Pollin, eds., New Perspectives in Monetary Macroeconomics: Explorations in the Tradition of Hyman Minsky. Ann Arbor: Univ. of Michigan Press, 1994, pp. 105-142; “Core Industries, Coercive Competition and the Structural Contradictions of Global Neoliberalism.” In N. Phelps and P. Raines, eds., The New Competition for Inward Investment: Companies, Institutions and Territorial Development. Northampton Massachusetts: Edward Elgar, 2003, pp.9-38; “The Neoliberal Paradox: The Impact of Destructive Product Market Competition and ‘Modern’ Financial Markets on Nonfinancial Corporation Performance in the Neoliberal Era.” In Gerald Epstein, ed., Financializaton and the World Economy. Northampton Massachusetts: Edward Elgar, 2005, pp. 77-110; “Resolving Volcker’s Paradox: The Puzzling Co-Existence of High Profits and ‘Hyper-Competition’ in Financial Markets?,” Competition and Change, forthcoming 2008.

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David R. Howell is a Professor of economics and public policy at Milano The New School for Management and Urban Policy, a division of The New School, New York. He is also an affiliated member of the New School’s economics department, a faculty research fellow at the Schwartz Center for Economic Policy Analysis (The New School), and a Research Scholar at the Political Economy Research Institute (U-Mass Amherst). His recent work focuses on inequality and unemployment in developed countries. Among his recent publications are “Increasing Earnings Inequality and Unemployment in Developed Countries: A Critical Assessment of the ‘Unified Theory’,” Politics and Society, (June 2002); the edited volume Fighting Unemployment: The Limits of Free Market Orthodoxy (Oxford, 2005); and “Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence,” (with Baker, Glyn and Schmitt), Capitalism and Society, (2007). Philip Arestis is University Director of Research, Cambridge Centre for Economics and Public Policy, Department of Land Economy, University of Cambridge, UK; Adjunct Professor of Economics, University of Utah, US; Senior Scholar, Levy Economics Institute, New York, US; Visiting Professor, University of Leeds, UK; and Visiting Professor, School of Oriental and African Studies (SOAS), University of London, UK. He was a member of the Economics and Econometrics RAE panel in 1996 and in 2001, and Quality Assessor for the quality assessment exercise in Economics of the Scottish Higher Education Funding Council, the Welsh Funding Councils and of the Higher Education Funding Council in England. He was a member of the Council of the Royal Economic Society (RES), and Secretary of the RES Standing Conference of Heads of Department in Economics (CHUDE). He is currently Vice-Chair of the ESRC-funded Macroeconomics, Money and Finance Research Group, and an elected member of the Executive Board of the Eastern Economic Association (EEA), USA. He is Chief Academic Adviser to the UK Government Economic Service (GES) on Professional Development in Economics. He has published as sole author or editor, as well as co-author and co-editor, a number of books, contributed in the form of invited chapters to numerous books, produced research reports for research institutes, and has published widely in academic journals.