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Post-Keynesian economics and New Keynesian 3 Post-Keynesian economics (A) Post-Keynesian economics and the basic characteristics of the formation of 1. Formation of Post-Keynesian economics 后凯恩斯派 in the New Neoclassical Synthesis controversy formed and developed. Keynes&#39;s &quot;General Theory&quot; was published, the Keynesian followers of the &quot;General Theory&quot; in a number of points of view of understanding and practical issues of disagreement, indicates the formation of two opposing schools of thought: New Neoclassical Synthesis and Post-Keynesian economics. The former Massachusetts Institute of Technology in Cambridge, the United States as the center, the latter centered on the University of Cambridge. Therefore, the struggle between two factions known as the &quot;two Cambridge battle.&quot; 2. Post-Keynesian economics theory of the basic characteristics of Post Keynesian against the neo-classical microeconomic theory, adhere to Keynesian macroeconomic theory, and sought to further split the two theories. Post-Keynesian economics in the critical New Neoclassical Synthesis, while actively clarify their own arguments. In theory, the basic characteristics of the school are: (1) Keynes&#39;s short-term, long-term expansion of comparative static analysis, dynamic analysis (2) Post Keynesian objections to the new Neoclassical Synthesis method to restore the traditional balance of Economics (3) stress theory of income distribution (4) the marginal productivity distribution of critical (5) stressed the currency will lead to instability in the capitalist economy (6) attention to normative analysis method 3. Post-Keynesian economics to the main representative Post-Keynesian economics of the main representatives are: Joan. Robinson, Nicholas. Kaldor, Pirro. Sraffa, lui quarter. Pasinetti et al. (B) Post-Keynesian economics theory of value Post-Keynesian economics in the representation theory of value is Sraffa&#39;s value theory. Sraffa&#39;s contribution to the theory of value, that he tried to build originates in the classical economists and Marx&#39;s value analysis. Ricardo and other classical economists in the works, the rest is an important concept. Sraffa that Ricardo upheld the labor theory of value, but does not solve the problem uniform standard of value, Marx did not solve the problem. Neoclassical school of &quot;marginal utility&quot; to explain the concept of subjective value is wrong, he fabricated a set of &quot;standard synthetic commodity production system&quot;, the &quot;standard system&quot;, designed a &quot;composite commodity&quot; to act as a measure of value that this solves the problem of Ricardo. From &quot;standard system&quot; that profit margins and wages can shift in the relationship between: (P118) R is the relative value of surplus product, from which the technological conditions of production. The higher margins, lower wages; the other hand, is no different. Sraffa system of equations Note: Yield depends on the technical relationship between the production process, rather than determined by market supply and demand interaction. However, the prices are not determined by production technology, but on the negotiations between the capitalists and the trade unions set wages, profits rise and fall between. Sraffa also in his theoretical system of commodity prices shows that the value of final goods is determined by labor. Each equation in the commodity prices are determined by the labor function. Goods by means of a combination of labor and production out. Post-Keynesian economics that Sraffa&#39;s &quot;Restore&quot; not only upheld the principle of Ricardo&#39;s labor theory of value, also address the value of production from the price of Marx&#39;s &quot;transformation&quot; problem. (C) Income Distribution Theory 1. On the New Neoclassical Synthesis Critical Theory of Distribution 2. Post-Keynesian economics of the distribution theory Sraffa price for the relationship between profitability and the analysis, as well as the standard system by the product derived &quot;same measure of value&quot; for the Post Keynesian school of value distribution theory provides a foundation on. (1) Robinson&#39;s theory of distribution Robinson growth model: (P124) (2) Kaldor&#39;s distribution theory Kaldor model of economic growth on the share of profits in national income and profitability of the formula is always valid, the specific expression as: (P127) and (P128) (3) Pasinetti&#39;s theory of distribution Pasinetti&#39;s economic growth model: (P129) (4) Sraffa distribution theory (as already note) (D) economic policy proposals Post Keynesian school of economic policy proposals, is based on the theory of income distribution. They argued that: 1. To improve the tax system first, to achieve equality of income. 2. By the Government&#39;s welfare measures to alleviate the &quot;rich in poverty&quot; phenomenon. 3. On the investment of a comprehensive social control, to overcome the blind economic growth, the economic and social inclusion Keynes envisaged a &quot;long-term full employment&quot; of the track. Four neo-Keynesians (New Keynesians) (A) the origin of the neo-Keynesians and development 1. The original Keynesian and New Keynesian Keynesian macroeconomics in the western area of long-term position in mainstream economics. However, since the late 60s since the early 70s, can not explain the stagflation of Keynesian phenomenon as being against the idea of a free economy and its school of criticism. Keynesian theory unable to meet the challenges of reality and hardship, from the mainstream orthodox economics, fall down on the throne. Economic liberalism has swept the field of Macroeconomics, the Keynesian increasingly declining. The emergence of a new Keynesian, so Keynesian came out from the predicament. 2. New Keynesian theory of the formation of the background New Keynesian objective conditions created, the original Keynesian theory of defects and the new classical macroeconomics limitation in the interpretation of micro-force lack practical problems. Less than the original Keynesian and new classical macroeconomics progress in theory, to the new Keynesian inspiration to useful. New Keynesian by the original neo-classical Keynesian macroeconomics hit, learn from the Keynesian school of their struggle against the lessons learned to form, and the new classical macroeconomics in the struggle to the continuous development of the original Keynesian revival. 3. New Keynesian assumptions and characteristics Non-market clearing assumption is that the most important new Keynesian hypothesis, this hypothesis came from the original Keynesian. However, the two theories of non-market clearing, there are significant differences. New Keynesian assumptions are: (1) assumes that wages and prices are sticky, that is, not can not adjust wages and prices, but can be adjusted, and the knowledge to adjust very slowly, to spend a very long time. (2) adds a new Keynesian models Keynesian model ignored the original two assumptions: First, the principle of maximizing the economic party, and second, rational expectations. New Keynesian economics is characterized by: deny neo-classical dichotomy that economic non-Walrasian equilibrium, the actual incomplete is important. (B) of the new Keynesian sticky price New Keynesian sticky price theory can be divided into two categories: First, on the nominal price stickiness; but on the actual price stickiness. 1. Stickiness of nominal prices (1) the cost of the menu On the menu cost literature, of which one representation theory: the menu costs and the business cycle theory; approximate model of rational economic cycle; actual rigid and non-neutrality of money and so on. (2) staggered price adjustment of Staggered adjustment theory, not a perfectly competitive market, manufacturers in order to maximize profits, usually staggered price adjustment, not synchronous manner. 2. Stickiness of actual price New Keynesian sticky on the actual price, in addition to the above-mentioned &quot;real rigidity and non-neutrality of money&quot;, there are: the credibility of firms, the asymmetry of demand, input-output table theory, oligopoly market and price stickiness On the. (C) the labor market of the new Keynesian New Keynesian labor market to overcome the Keynesian theory specified permissions, maintaining a non-clearing labor market Keynesian doctrine. New Keynesian theory of the labor market, the key assumption is that wage stickiness, summed up in no more than two categories: nominal wage stickiness on; but on the real wage stickiness. 1. Stickiness of nominal wages New Keynesian sticky nominal wages on the representation theory are: staggered wage adjustments and long-term labor contract on the theory and so on. 2. Stickiness of real wages New Keynesian theory on the real wages are more sticky, the typical theories include: implicit contract theory, efficiency wage theory and the Council - outsider theory. Implied contract, implied contract of including public information and asymmetric information theory of implied contract. Efficiency wage theory of the main contents include the following three aspects: efficiency wages and labor market; efficiency of the micro base salary; efficiency wages and unemployment. Lag of unemployment also includes three aspects: pure insider&#39;s wage adjustments; have an outsider wage pressure adjustment; unemployment persistence and wage adjustment. (D) The new Keynesian theory of credit rationing New Keynesian theory of credit rationing in the credit markets from asymmetric information, this paper discusses the choice of interest rates and collateral effects of the credit markets will lead to credit rationing, credit markets fail, government intervention has a positive effect. 1. Selection effects of interest rates and credit rationing Interest rates have two options, one positive choice, second choice is the reverse. Positive selection effect of interest rates refers to the increase in interest rates can increase the bank&#39;s earnings, it is the interest rate on bank earnings and direct. Interest rates also have incentives for manufacturers, manufacturers can change the attitude towards risk. Bank using interest rates of adverse selection effect as the detection of wit, can be rare risk identification the company level and will lend to the risk of different vendors. Optimal bank interest rate is usually not the same when the market clearing interest rate, so, credit market rationing. Rationing of credit markets, credit market, banks are free choice based on the interest rate effect, for the purpose of maximizing profits, the result of rational act, not the product of state intervention. 2. The choice of mortgage loans and credit rationing effect Collateral has a positive effect of selection effects and adverse selection. The former is when there is excess demand for credit markets, the bank loans by raising the loan collateral to increase the level of reliability, reduce the risk of bad debts to increase bank revenue. At the same time, also inhibited the demand for loans by borrowers. The latter is the collateral for the loan will increase the level of incremental risk of the loans, reducing the reliability of repayment. Both banks can determine the optimal level of collateral. New Keynesian theory of credit rationing that market interest rates because of the credit rationing wit and resourcefulness also work in the credit markets appear multiple equilibrium states, where market mechanisms, through government intervention to correct market failures. (E) The new Keynesian policy proposals 1. New Keynesian pricing policy The price of the new Keynesian policy recommendations aimed to suppress the price stickiness, the price elasticity, to repair the failure of market mechanisms, stable output. New Keynesian staggered price adjustment in the menu cost theory, theory and put forward policy proposals are broadly similar. These two policy proposals advocated by policy interventions to coordinate the behavior of economic man, to correct market failure, essentially correct, but the lack of maneuverability. 2. New Keynesian employment policy New Keynesian theory of labor wages, the micro-economics based on the interpretation of sticky wages and unemployment, and made a number of on wage employment policy. These policy recommendations focused on the Council - outsider theory and other theories of staggered labor contracts. New Keynesian employment policy still on increasing wage flexibility, reduce unemployment, the policy idea is reasonable, but the color with strong ideals, specifically to implement a certain degree of difficulty. For the government to dare to labor contracts, lack of feasibility in the capitalist countries. 3. New Keynesian monetary policy and credit policy (1) monetary policy New Keynesians believe that in order to achieve stable output target, the government deserve to monetary policy are: to adjust the amount of money and influence the market price suited to the actual disturbance, and disturbance caused by price movements in the name of the reverse acting. However, these two policies have different effects on employees, the former means that output stability, the employee&#39;s wages is not stable, which means that output stability, stable wages. (2) credit policy New Keynesian credit policy advice: the government starting from the social welfare maximization, should intervene in credit markets. Use of subsidies or loans to provide credit guarantees and other means to lower market interest rates, so that those who have access to loans for social projects.
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