Ernesto Screpanti on Karl Marx on wage labour – From natural abstraction to formal subsumption

From the abstract: Marx develops two different theories of the employment relationship: in one it results from a contract for the sale of a commodity, in the other from a contract establishing a social relationship. According to the first, the worker sells a commodity, which is conceived as a flow of abstract labour springing from … More Ernesto Screpanti on Karl Marx on wage labour – From natural abstraction to formal subsumption

New paper by Malcolm Sawyer: The Economic and Monetary Union – Past and Present Failures and some Future Possibilities

From World Economic Review: The Economic and Monetary Union was constructed on poor foundations which sought to impose inappropriate macroeconomic policies. This construction did not pay heed to the differences between countries with regard to their economic position and interests nor to the institutional and historical differences. The EMU was faltering before the financial crisis … More New paper by Malcolm Sawyer: The Economic and Monetary Union – Past and Present Failures and some Future Possibilities

ISLM: a further explanation and a defense* by Matías Vernengo

I noted before  the traditional representation of the ISLM is problematic. Yet as I also noted the ISLM model can accommodate changes that incorporate the criticisms of classical-Keynesian, post-Keynesian and other heterodox groups. There is no need for an investment function based on the marginal productivity of capital and the principle of substitution. The accelerator can be … More ISLM: a further explanation and a defense* by Matías Vernengo