Vitor Mello — Using Minsky to Better Understand Economic Development – Part 1 & 2

This year the global system has seen two major shocks: Brexit and Trump. What these events have in common is their populist rhetoric that promised to bring back jobs, while also making xenophobic statements. These elections have tapped into growing anxiety over job security, which has not been addressed by most governments and has given room for demagogues to tap into the anger of the people. They reflect a problem that transcends the boundaries of any single nation: the global economy has been in a slump for almost a decade. Governments need to create jobs, and public fiscal stimulus is the way to do so. To allow it, we must rethink that system.

The Minsky's

Using Minsky to Better Understand Economic Development – Part 1

Using Minsky to Better Understand Economic Development – Part 2
Vitor Mello

Sebastian Valdecantos Halporn and Gennaro Zezza — Reforming the International Monetary System: a Stock-Flow Consistent Approach

FYI. Links, if you have access or are willing to pay.

Reforming the international monetary system: a stock-flow-consistent approachSebastian Valdecantos Halporn and Gennaro ZezzaJournal of Post Keynesian Economics, vol. 38, n.2, 2015, pp. 167-191

Abstract: The emergence and persistence of large trade imbalances as well as the volatility of financial flows among countries have been attributed, at least in part, to the inadequacy of the current international monetary system after the breakdown of Bretton Woods. From a different perspective, the current eurozone crisis is also the result, in our view, of a flawed institutional setting. These problems call for reforms to mitigate or avoid the recessionary bias that is the outcome of current systems, as Keynes predicted in the discussion preceding the Bretton Woods agreements. In this paper we briefly review the evidence on international imbalances, and survey the rapidly growing literature on the subject. We introduce a set of models based on the stock-flow-consistent approach pioneered by Godley (1999) and Lavoie and Godley (2003). We discuss how to use these models to explore potential reform of the international monetary system.

The first version of this paper dates back to 2011… but it has been written to provide a benchmark model so that other researchers could expand on it, so it should not become obsolete too quickly!

sfc-models.net
Reforming the International Monetary System: a Stock-Flow Consistent Approach

Sebastian Valdecantos Halporn and Gennaro Zezza

Michael Pettis — Are we starting to see why its really the exorbitant “burden”

This may be excessively optimistic on my part, but there seems to be a slow change in the way the world thinks about reserve currencies. For a long time it was widely accepted that reserve currency status granted the provider of the currency substantial economic benefits. For much of my career I pretty much accepted the consensus, but as I started to think more seriously about the components of the balance of payments, I realized that when Keynes at Bretton Woods argued for a hybrid currency (which he called “bancor”) to serve as the global reserve currency, and not the US dollar, he wasn’t only expressing his dismay about the transfer of international status from Britain to the US. Keynes recognized that once the reserve currency was no longer constrained by gold convertibility, the world needed an alternative way to prevent destabilizing imbalances from developing. 

This should have become obvious to me much earlier except that, like most people, I never really worked through the fairly basic arithmetic that shows why these imbalances must develop.…

China Financial Markets
Are we starting to see why its really the exorbitant “burden”
Michael Pettis | Professor of Finance at Peking University’s Guanghua School of Management

Houses and Holes — Do we need one global currency?

Reviving the bancor as a global reserve currency for international trading purposes, proposed by Keynes but rejected by the US at Bretton Woods.

MacroBusiness — Global Macro: Houses and Holes
Do we need one global currency?
Houses and Holes

Steve Keen — The International Financial Order

I was invited to give a speech on that topic to the Sec­ond Meet­ing of Min­is­ters of Finance of the CELAC in Quito, Ecuador today (Novem­ber 29 2013). In it I out­lined Keynes’s Ban­cor pro­posal from Bret­ton Woods, explained why White’s plan was adopted instead, sup­ported the pro­posal by Zhou Xiaochuan, the Gov­er­nor of the Cen­tral Bank of China, to insti­tute Keynes’s scheme, and pro­posed that Latin Amer­ica could try a regional ver­sion of the same via the Bank of the South.

Debtwatch
The International Financial Order
Steve Keen

Philip Pilkington — Why MMT is Right and the Dreamers are Wrong – Kaldor Versus the Kaldorians

Nicholas Kaldor was one of the most famous economists of the 20th century. He was considered by many to be the direct heir to John Maynard Keynes as he was not only an extremely accomplished theoretical economist but also played a key role in the construction of British economic policy after World War II and was an all-round politically savvy individual – he ended his life, like Keynes, with a Lordship.

We mention this because if you read his writings you note that there were really two Kaldors. One was the Kaldor of the halls of Cambridge University. This was the Kaldor of abstract mathematical models of how capitalist economies function (some of the finest ever produced, mind you). The other Kaldor was the Kaldor that actually analysed economic problems and proposed solutions – while keeping firmly in mind the political situation of whatever time he was giving advice.

Naked Capitalism
Philip Pilkington: Why MMT is Right and the Dreamers are Wrong – Kaldor Versus the Kaldorians

Economics v. political economy.

Phil and Ramanan debate in the comments.

Lars Schall interviews Chris Cook

The internationally acknowledged energy consultant Chris Cook addresses in this exclusive interview the new IEA report; the pre-dominant factors in the oil market; his version of a commodity-based currency; why an attack on Iran is rather unlikely; and the consequence of a rising oil price for gold.

GoldSwitzerland
THE MATTERHORN INTERVIEW – November 2012: Chris Cook
“The Petrodollar is Either Dead or Dying”
Lars Schall interviews Chris Cook

Steve Keen — The Euro as the SDR of Europe?

Steve proposes a novel way out of the euro crisis.

Read it at Steve Keen's Debtwatch
The Euro as the SDR of Europe?
Steve Keen

Garth Brazelton — Global Currency Reserve

I don't understand how some liberal (read: New Keynesian) economists like Stiglitz want to, essentially, create the same conditions that Greece now faces - only on a global scale.

Read it at Reviving Economics
Global Currency Reserve
by Garth Brazelton

Mentions Warren Mosler at the end: "And I happen to think Warren Mosler's idea from a year ago of essentially (and somewhat sneakily) creating a new Greek currency (but not quite) by turning Greek bonds into a form of money (means of payments for public debt - pay your taxes with a bond!) was pure genius."

See also the Wikipedia article on the Bancor global currency proposed by Keynes for some history on the concept.