Are corporations’ financial investments crowding out other corporate spending? Leila Davis looks at the financialization of non-financial corporations—i.e., firms that traditionally produce goods and services and invest in machinery, buildings and technology rather than trade in financial assets—and asks what it means that they’re taking on large financial investments. We know that the same time … More Leila Davis: Are Corporations’ Financial Investments Slowing Growth?
By William Lazonick, The prevailing stock market ideology enriches value extractors, not value creators. Conventional wisdom holds that the primary function of the stock market is to raise cash that companies use to invest in productive capabilities. The conventional wisdom is wrong. Academic research on corporate finance shows that, compared with other sources of funds, … More How “Shareholder Value” is Killing Innovation
Since the last big events concerning this topic (Brexit and Trump’s victory), there has been a myriad of editorials and academic articles on the roots of those speeches and practices associated to mid twentieth century totalitarian doctrines (especially nazism and fascism). However, we believe that there is still a blind spot concerning new economic concepts … More Call For Abstracts: “States place in a globalized economy and the reemergence of nationalism,” INET
Josh Mason from John Jay College CUNY doesn’t think teaching contending economic theories is effective, and sees the objective of introductory economics courses as teaching students basic tools to understand economic terminology, national accounts, and standard relationship between cause and effect.
Economics is not, nor can it be, value-free. George DeMartino discusses economist’s influence, whether they should ever lie, and the irreparable ignorance that haunts economics. DeMartino argues for professional ethics in economics as a field of study beyond a code of conduct.
Is it time for dependency theory to make a comeback? Its central idea is that developed (”core”) countries benefit from the global system at the expense of developing (”periphery”) countries—which face structural barriers that make it difficult, if not impossible, for them to develop in the same way that the already developed countries did. As … More Dialogues on Development: On Dependency theory
By Servaas Storm, The Great Financial Crisis of 2008 deeply scarred the U.S. economy, bringing nine dire years of economic stagnation, high and rising inequalities in income and wealth, steep levels of indebtedness, and mounting uncertainty about jobs and incomes. Big parts of the U.S. were hit by elevated rates of depression, drug addiction and ‘deaths … More The New Normal: Demand, Secular Stagnation and the Vanishing Middle-Class