martedì 6 aprile 2021
Keynes’s finance, the monetary and demand-led circuits: a Sraffian assessment
Sergio Cesaratto DEPS, USiena
Riccardo Pariboni DEPS, USiena
This paper aims to stimulate the convergence of the Sraffian approach to demand-led growth theory with insights from monetary circuit theory and stock-flow models. The first Sraffian contribution to this convergence we identify is the extension of Garegnani’s interpretation of Keynes’ General Theory’s originality and limitations to Keynes’ 1937 papers on “finance.” In both cases, it is a question of freeing Keynes from the ties of marginalist theory. After discussing some troubles of the monetary circuit, we identify a complementarity between the Keynesian concept of finance, some insights of the monetary circuit, and the role attributed by the Sraffian take of demand-led growth to the autonomous components of demand (which are also Kalecki’s external markets). This seems to us to be the second Sraffian contribution to this convergence towards a monetary theory of demand-led growth.
Keynes, Finance, Monetary Circuit, Effective Demand, Supermultiplier
B26, E12, E43, E50
domenica 4 aprile 2021
Without Eurobonds, Italy risks a debt restructuring accompanied by austerity. The currently planned Recovery Fund is not enough to solve the EU’s problems
Sergio Cesaratto is Professor of Growth and Development Economics and of Monetary and Fiscal Policies in the European Monetary Union, University of Siena. His newest book, “Heterodox Challenges in Economics – Theoretical Issues and the Crisis of the Eurozone” was recently published by Springer Read our review here
Interview by Lorenzo Torrisi
The original Italian version at Il Sussidiario can be read here
Brussels does not seem to be concerned about the stop to the ratification of the Recovery Fund that came from the German Constitutional Court at the end of last week. “We are convinced that the recovery plan will be launched as planned and our goal remains to complete the ratification process by the end of the second quarter of this year,” an EU spokesman said. Almost at the same time as the Karlsruhe judges pronounced their decision, Mario Draghi relaunched Eurobonds at the last European Council. “I know it’s a long road, but we have to get started. It’s a long-term goal, but it’s important to have a political commitment,” said Draghi, who added: “We have to design a framework for fiscal policy that is able to lead us out of the crisis”. Just a coincidence? “Probably not entirely – is the opinion of Sergio Cesaratto, Professor of European Monetary Policy at the University of Siena.