1,721,080 research outputs found
Interview with Engelbert Stockhammer
No full textEngelbert Stockhammer obtained his PhD at the University of Massachusetts at Amherst in 2000. He joined Kingston in 2010. He is presently research associate at the Political Economy Research Institute at the University of Massachusetts at Amherst) and member of the coordination committee of the Research Network Macroeconomics and Macroeconomic Policy. His research areas include macroeconomics, applied econometrics, financial systems and heterodox economics. He has worked extensively on the de..
The Rise of European Unemployment: A Synopsis
Full text linkUnemployment in the European Union has risen from a modest 2% in 1970 to 8.3% in 2002, a level not seen since the Great Depression. In this draft introduction for his new book, The Rise of European Unemployment: A Keynesian Approach, economist Engelbert Stockhammer argues that changes in the relationship between the financial sector and the real sector of the economy, a phenomenon he labels “financialization,” is at the root of the slowdown.
sj-pdf-1-pas-10.1177_00323292231201480 - Supplemental material for Bringing Household Finance Back In: House Prices and the Missing Macroeconomics of Comparative Political Economy
No full textSupplemental material, sj-pdf-1-pas-10.1177_00323292231201480 for Bringing Household Finance Back In: House Prices and the Missing Macroeconomics of Comparative Political Economy by James D. G. Wood and Engelbert Stockhammer in Politics & Society</p
A Modern Guide to Keynesian Macroeconomics and Economic Policies Eckhard Hein & Engelbert Stockhammer (Eds)
No full textEckhard Hein and Engelbert Stockhammer have recently edited this book, which intends to provide an overview of Keynesian and Post Keynesian macroeconomics and policies at an intermediate-to-advanced level. The book contains 13 chapters covering topics and issues typically dealt with by Post Keynesian economists
Financialization and the Global Economy
Full text linkIn this chapter from the forthcoming book, The Political Economy of Financial Crises, edited by Gerald Epstein and Martin H. Wolfson, (Oxford University Press, 2012) Engelbert Stockhammer�discusses ‘financialization’, i.e. changes in the role of the financial sector. This will highlight (1) changes in household behavior, in particular with regards to household debt, (2) changes in the behaviour of non-financial businesses, such as shareholder value orientation and increased financial activity and (3) changes in the financial sector, in particular the emergence of the (hardly regulated) shadow banking sector, a shift towards household credit (rather than business credit) and a shift to investment banking/fee generating business. Second, the chapter discusses the international dimension of financialization. Here the liberalization of capital flows and its consequences, the determination of exchange rates by capital flows (rather than by current account disequilibria), will be discussed. International financial liberalization has not fulfilled the neoliberal promise of generating investment-based growth, but rather has given rise to a series of financial crises that were typically driven by a swing of capital inflows (‘capital flow bonanza’) followed by capital flow reversals. Third, the chapter offers an interpretation of the finance-dominated accumulation regime as having given rise to two distinct growth models (based on Stockhammer 2010): a credit-financed consumption-driven growth model (mostly in Anglo-Saxon countries) and a export-driven growth model (in Germany, Japan, and, possibly, China). Both growth models suffer from a structural demand deficiency, which is due to wage suppression, but each try to overcome this by different means (credit-financed consumption or export orientation). The chapter thus highlights how financialization with its domestic and international effects have interacted with a polarization of income distribution to generate the structural imbalances that led to the crisis 2007-09.
Financialization and the Slowdown of Accumulation
Full text linkOver the past decades financial investment of non-financial businesses has been rising and accumulation of capital goods has been declining. The first part of the paper offers a novel theory to explain this phenomenon. Financialization, the shareholder revolution and the development of a market for corporate control have shifted power to shareholders and thus changed management priorities, leading to a reduction in the desired growth rate. In the second part the link between accumulation and financialization is tested econometrically by means of a time series analysis of aggregate business investment for USA, UK, France, and Germany. Extensive test of robustness are performed. For the first three countries evidence that confirms the negative effect of financialization on accumulation is found. A revised version of the paper is forthcoming in the Cambridge Journalof Economics. Please contact the author for the revised version.financialization; business investment; class analysis; theory of the firm
Is There an Equilibrium Rate of Unemployment in the Long Run?
Full text linkDistinguishing between profit led and growth led demand regimes, we analyze the conditions of existence and stability of long run equilibrium of unemployment. The model we employ has at its center the relation between growth and distribution. Growth can be either wage led or profit led. Distribution itself is a function of the unemployment rate, with higher unemployment leading to a higher profit share. We use Okun's Law to close the model, making the change of the rate of unemployment a function of growth. The interesting result of our analysis is that in profit led demand regime the short run and long run equilibrium are stable. However, if the demand regime is wage led, the same conditions that guarantee stability of the goods market equilibrium in the short run render impossible the existence of a long run equilibrium rate of unemployment, and vice versa. Thus, if Kalecki's proposition that higher wages lead to higher growth is true, there will be no equilibrium rate of unemployment in the long run that serves as an anchor for the economic system. A revised version of the paper is forthcoming in the Review of Political Economy. Please contact the author for the revised version.growth theory; unemployment; keynesian economics
Book Reviews / Rezensionen
No full textBooks reviewed: Joachim Becker, Andrea Grisold, Gertraude Mikl-Horke, Reinhard Pirker, Hermann Rauchen schwandtner, Oliver Schwank, Elisabeth Springler, Engelbert Stockhammer (2009): Hetero doxe Ökonomie, Marburg Herbert Schui (2009): Gerechtere Verteilung wagen. Mit Demokratie gegen Wirtschaftsliberalismus, Hamburg Bo Sandelin, Hans-Michael Trautwein, Richard Wundrak (2008): A Short History of Economic Thought, 2nd edition, London/New Yor
The REF’s singular focus on excellence limits academic diversity
No full textResearch assessment exercises, such as the REF ostensibly serve to evaluate research, but they also shape and manage it. Based on a study of REF submissions in the fields of economics, history, business and politics, Engelbert Stockhammer, argues that the REF promotes a narrow vision of economics determined largely by work published in particular journals and calls for a wider distribution of research funding to prevent fields being captured by dominant academic cultures
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