At our conference, we will focus on progressive perspectives to face these challenges. What can macroeconomists from different schools of thought contribute to these debates?
Public opinion and the perceptions of poorer households consistently indicate that the poor are most exposed to inflation. Meanwhile, the empirical literature on income-dependent inflation inequality remains ambiguous. In this paper, we explore two different explanations for this inflation-inequality puzzle.
Paul Davidson was a critical figure in the preservation of John Maynard Keynes’s ideas, sticking with them when they were out of fashion. He was also key to the survival of the Post Keynesian school. Davidson endorsed Keynes’s liquidity preference theory of interest, and he emphasized fundamental uncertainty as a central feature of economic reality, essential to making sense of a monetary economy.
The aim of this paper is to explore how monetary income is both pooled and allocated. This seems a useful task beyond the aforementioned debate to dissipate other puzzling issues like the costs of TARGET2 imbalances. A more detailed dissemination from the relevant authorities as to the process by which profits/losses are pooled and subsequently allocated is however in our view warranted.
Over the past decades, models of circular and cumulative causation, based on the endogenous relations between prices, exports, and labour productivity, have lost prominence in explaining economic dynamics. We argue that, in the absence of counterbalancing mechanisms, the combination of price-sensitive exports and the triggering effect of exports on productivity can enable feedback loops and can significantly shape macroeconomic reality in the short-to-medium run.
FMM Fellows are distinguished scholars that contribute to the development of the Forum, act as its ambassadors in academics and policy circles and give advice to the coordination group.
