Roads to Social Capitalism

Roads to Social Capitalism

Theory, Evidence, and Policy

Peter Flaschel and Sigrid Luchtenberg

The current crises in the financialization of capitalism, and their repercussions on the financial viability of entire countries, severely question the achievements of mainstream economics and its disregard of Keynes’s theory of effective demand and finance. In view of this, Peter Flaschel and Sigrid Luchtenberg consider roads to a type of capitalism that could eventually be considered as ‘social’ in nature. The authors underpin their study with theory, empirical evidence, and policy from a positive as well as a normative perspective. As points of departure for their concept of social capitalism, the theoretical framework provides a synthesis of the work of Marx, Keynes, and Schumpeter on ruthless capitalism, regulated capitalism, and competitive socialism.

Notations

Peter Flaschel and Sigrid Luchtenberg

Subjects: economics and finance, history of economic thought, radical and feminist economics

Extract

Steady state or trend values are indicated by a sub(super)script ‘o . A dot over a variable x = x(t) denotes the time derivative, a caret its growth rate; x = dx/dt, x = x/x. As far as possible, the notation tries ˙ ˆ ˙ to follow the logic of using capital letters for level variables and lower case letters for variables in intensive form, or for constant (steady state) ratios. Greek letters are most often constant coefficients in behavioral equations (with, however, the notable exceptions being the π’s, and ω). Moreover there is some ‘local’ notation which only applies to certain chapters of the book. B C E G I J K Ld Lw L M Sf Sg Sp S T Λf , Λg Dc , Dt Wn outstanding government fixed-price bonds (priced at pb = 1) real private consumption (demand is generally realized) number of equities real government expenditure (demand is always realized) real net investment of fixed capital (demand is always realized) Jacobian matrix in the mathematical analysis stock of fixed capital employment, i.e., total working hours per year (labor demand is always realized) employed workforce, i.e., number of employed people labor supply, i.e., supply of total working hours per year stock of money supply real saving of firms real government saving real saving of private households total real saving; S = Sf + Sg + Sh total real tax collections debt of firms, government checkable and time deposits nominal wealth of private households 365 366 Y Yd c e U =1−e fx = f1...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information