(in German)
Jürgen Kromphardt, Stephanie Schneider:
Zur Bedeutung der Arbeitsmarktbedingungen für die Erklärung
der Arbeitslosigkeit
Labour Market Conditions and Unemployment
(in German)
Braucht Deutschland zusätzliche Kombilöhne?
Does Germany Need Additional In-work-benefits?
(in German)
Inequality and Efficiency – Does a Wider Spread of Wages Raise Employment?
Keine "demographische Wende" am Arbeitsmarkt in Sicht
No "Demographic Turn" in Sight on the Labour Market
(in German)
Versicherungspflicht gegen Elementarschäden: Warum wir sie brauchen, aber nicht bekommen
Mandatory Insurance Against Elementary Risks: Why We Need It But Won’t Get It
(in German)
Presentation of the EuroMemorandum-Group
(in German)
"The 'New Monetary Policy'– A Critical Appraisal"
New Monetary Policy and Keynes
The 'New Consensus' View of Monetary Policy: A New Wicksellian Connection?
Rethinking the Role of Monetary Policy and Wage Bargaining in a World Without the Real Balance Effect
Wage Bargaining and Monetary Policy in a Kaleckian Monetary Distribution and Growth Model: Trying To Make Sense of the NAIRU
A Kaleckian Analysis of Monetary Policy
Currency Unions, the Phillips Curve, and Stabilization Policy: Some Suggestions for Europe
Gesundheit nach Maß? Eine transdisziplinäre Studie zu den Grundlagen eines dauerhaften Gesundheitssystems
(Kai Mosebach)
(in German)
Fighting Unemployment. The Limits of Free Market Orthodoxy
(Engelbert Stockhammer)
The Economics of Innocent Fraud
(Margit Schratzenstaller, Achim Truger)
The Rise of Unemployment in Europe. A Keynesian Approach
(Miriam Rehm)
Wohlfahrtsstaat als Standortvorteil. Deutschlands Reformirrweg im Lichte des skandinavischen Erfolgsmodells
(Diana Auth)
(in German)
Abstracts
New
Monetary Policy and Keynes
by Philip Arestis
The purpose of this paper is to compare new developments on the monetary
policy front, or what is known as inflation targeting, with some of Keynes’s
ideas as propounded in a pamphlet in 1932. A number of the ingredients
of the new monetary policy approach can be found in Keynes, especially
that of central bank independence. However, new monetary policy is a major
policy prescription closely associated with the New Consensus Macroeconomics.
The ideas and policy implications of this new consensus, however, are
very different from Keynes’s ideas on central banking and monetary
policy. We explore these propositions in this contribution.
JEL classifications: E31, E52
Keywords: central bank independence, economics of Keynes, new consensus
macroeconomics, inflation targeting, monetary policy
The
'New Consensus' View of Monetary Policy: A New Wicksellian Connection?
by Giuseppe Fontana
One of the greatest achievements of the modern 'New Consensus' view in
macroeconomics is the assertion of a non-quantity-theoretic approach to
monetary policy. Leading theoricians and practitioners of this view have
indeed rejected the quantity theory of money, and defended a return to
the old Wicksellian idea of eliminating high levels of inflation by adjusting
nominal interest rates to changes in the price level. This paper evaluates
these recent developments in the theory and practice of monetary policy
in terms of two basic questions, namely what is the monetary policy instrument
controlled by the central bank, and which macroeconomic variables are
affected in the short and long run by monetary policy.
JEL classifications: E5, E52
Keywords: Wicksell, monetary policy, New Consensus, endogenous money
Rethinking
the Role of Monetary Policy and Wage Bargaining in a World Without the
Real Balance Effect
by Sebastian Dullien
In standard macroeconomic models (new classical, AS-AD, monopolistic competition
etc.) monetary policy determines the price level. Output and employment
are determined in the labour market where nominal wages are set (possibly
under the influence of unions), which together with the price level yield
real wages. This paper shows that including nominal wages instead of real
balances in the aggregate demand function of a standard monopolistic competition
model changes this conclusion completely. In a model with micro-founded
investment decisions, wage setters now control the price level. Monetary
policy determines output and employment. Neither actor can influence real
wages and profits, which are determined by the degree of monopolisation.
Further, this conclusion fits well the stylised facts of the Euro area
and provides an explanation for high unemployment in Europe.
JEL classifications: E61, E64, E52
Keywords: monetary policy, wage bargaining, unemployment, heterodox economics
Wage Bargaining
and Monetary Policy in a Kaleckian Monetary Distribution and Growth Model:
Trying to Make Sense of the NAIRU
by Eckhard Hein
In a Kaleckian monetary distribution and growth model with conflict inflation
we assess the role of a Non-Accelerating Inflation Rate of Unemployment
(NAIRU). The short-run stability of a NAIRU is examined taking into account
real debt effects of accelerating and decelerating inflation, and the
short-run effectiveness of monetary policy interventions applying the
interest rate tool is analysed. The problem of long-run endogeneity of
the NAIRU is addressed integrating the long-run distribution effects of
monetary policies' real interest rate variations into the model. It is
concluded that monetary policy interventions in order to stabilise inflation
are either unnecessary or costly in terms of employment in the short run.
In the long run, these policies bear the risk of continuously increasing
the NAIRU in order to keep inflation under control, which yields a horizontal
long-run Phillips curve and latent stagflation. Instead of relying on
monetary policies, the cause of inflation should be directly addressed
and wage bargaining co-ordination should be applied as an appropriate
tool.
JEL classifications: E12, E22, E24, E25, E52
Keywords: monetary policy, wage bargaining, inflation, distribution, growth
by Malcolm Sawyer
This paper has the simple objective of exploring the implications of a Kaleckian (heterodox) macroeconomic analysis for the effectiveness of monetary policy, specifically one based on the use of interest rates to target the rate of inflation. The paper begins by setting out the essential features of a Kaleckian macroeconomic analysis in terms of the role of aggregate demand and money, and considering the nature of the supply-side of the economy. Some features of that analysis are drawn out and implications are drawn for the nature and effectiveness of monetary policy.
JEL classifications: E12, E50
Keywords: monetary policy, Kalecki, macroeconomic analysis
by Thomas I. Palley
This paper examines the implications of a currency union for monetary policy. The formation of a currency union worsens the inflation-unemployment trade-off, so that leaving the inflation target unchanged at its pre-currency union level generates increased unemployment. Geographically based fiscal automatic stabilizers can improve the inflation-unemployment trade-off, which has bearings on the Euro area's Stability and Growth Pact. Financial intermediary balance sheet regulation based on asset-based reserve requirements (ABRR) can provide additional country-specific policy instruments. ABRR alleviate the targets and instruments problem afflicting the monetary authority in a currency union context. This is important for the European Central Bank, which is trying to manage divergent country growth rates with a single interest rate instrument.
JEL classification: E5
Keywords: currency unions, Phillips curve, monetary policy, fiscal policy, asset based reserve requirements