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<title>Levy Economic Institute of Bard College News Wire</title>
<link>http://www.levyinstitute.org/publications/</link>
<description>The latest publications from The Levy Economic Institute.</description>
<copyright>(c) 2012 The Levy Economic Institute, All Rights Reserved</copyright>
<ttl>60</ttl>
<pubDate>Wed, 16 May 2012 20:16:49 -0400</pubDate>
<lastBuildDate>Wed, 16 May 2012 20:16:49 -0400</lastBuildDate>
<language>en-us</language>





















<item>
<title><![CDATA[Greece and the Euro: What’s Next?: By Chris Isidore]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1539]]></link>
<guid isPermaLink="false">1539</guid>
<pubDate>Tue, 15 May 2012 09:33:00 -0400</pubDate>
<description><![CDATA[CNNMoney, May 14, 2012.   2012 Cable News Network.]]></description>
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<item>
<title><![CDATA[Fiscal Policy, Unemployment Insurance, and Financial Crises in a Model of Growth and Distribution]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1538]]></link>
<guid isPermaLink="false">1538</guid>
<pubDate>Mon, 14 May 2012 11:39:00 -0400</pubDate>
<description><![CDATA[Recently, some have wondered whether a fiscal stimulus plan could reduce the government's budget deficit. Many also worry that fiscal austerity plans will only bring higher deficits.]]></description>
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<title><![CDATA[Will the Eurozone Unravel before the Elections?: Background Briefing: Ian Masters Interviews Dimitri B. Papadimitriou]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1537]]></link>
<guid isPermaLink="false">1537</guid>
<pubDate>Mon, 14 May 2012 10:07:00 -0400</pubDate>
<description><![CDATA[With Greece teetering and increasing doubts about the solvency of Spanish banks, Masters and Papadimitriou discuss the growing likelihood of a cascading crisis in the eurozone and its potential impact on US elections in November. Full audio of the interview is available here.]]></description>
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<title><![CDATA[Guaranteed Green Jobs: Sustainable Full Employment]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1536]]></link>
<guid isPermaLink="false">1536</guid>
<pubDate>Fri, 11 May 2012 15:14:00 -0400</pubDate>
<description><![CDATA[In most economies, the potential of saving energy via insulation and more efficient uses of electricity is important. In order to reach the Kyoto Protocol objectives, it is urgent to develop policies that reduce the production of carbon dioxide in all sectors of the economy.]]></description>
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<title><![CDATA[The Euro Debt Crisis and Germany’s Euro Trilemma]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1535]]></link>
<guid isPermaLink="false">1535</guid>
<pubDate>Fri, 11 May 2012 09:35:00 -0400</pubDate>
<description><![CDATA[This paper investigates the causes behind the euro debt crisis, particularly Germany's role in it. It is argued that the crisis is not primarily a "sovereign debt crisis" but rather a (twin) banking and balance of payments crisis.]]></description>
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<title><![CDATA[What Are the Driving Factors behind the Rise of Spreads and CDSs of Euro-area Sovereign Bonds?: A FAVAR Model for Greece and Ireland]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1534]]></link>
<guid isPermaLink="false">1534</guid>
<pubDate>Thu, 10 May 2012 09:44:00 -0400</pubDate>
<description><![CDATA[This paper examines the underlying dynamics of selected euro-area sovereign bonds by employing a factor-augmenting vector autoregressive (FAVAR) model for the first time in the literature. This methodology allows for identifying the underlying transmission mechanisms of several factors; in particular, market liquidity and credit risk.]]></description>
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<title><![CDATA[Reorienting Fiscal Policy after the Great Recession]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1533]]></link>
<guid isPermaLink="false">1533</guid>
<pubDate>Wed, 09 May 2012 14:45:00 -0400</pubDate>
<description><![CDATA[The paper evaluates the fiscal policy initiatives during the Great Recession in the United States. It argues that, although the nonconventional fiscal policies targeted at the financial sector dwarfed the conventional countercyclical stabilization efforts directed toward the real sector, the relatively disappointing impact on employment was a result of misdirected funding priorities combined with an exclusive and ill-advised focus on the output gap rather than on the employment gap.]]></description>
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<item>
<title><![CDATA[Markets Could Stumble after France, Greece Votes: By Daniel Wagner]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1532]]></link>
<guid isPermaLink="false">1532</guid>
<pubDate>Sun, 06 May 2012 10:30:00 -0400</pubDate>
<description><![CDATA[Bloomberg Businessweek, May 6, 2012. Copyright 2012 Bloomberg L.]]></description>
</item>
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<title><![CDATA[Building Effective Regulation Requires a Theory of Financial Instability]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1531]]></link>
<guid isPermaLink="false">1531</guid>
<pubDate>Fri, 04 May 2012 16:51:00 -0400</pubDate>
<description><![CDATA[Hyman Minsky had particular views about how the regulatory system and financial architecture should be reformulated, and one of the many lessons we can learn from his work is that there is an intimate connection between how we think about the prospect of financial market instability and how we approach financial regulation. Regulation cannot be effective if it is simply based on "piecemeal" measures produced in response to the current "moment," Minsky wrote.]]></description>
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<title><![CDATA[Aggregate Production Functions and the Accounting Identity Critique: Further Reflections on Temple’s Criticisms and Misunderstandings]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1530]]></link>
<guid isPermaLink="false">1530</guid>
<pubDate>Fri, 04 May 2012 15:27:00 -0400</pubDate>
<description><![CDATA[In a reply to Felipe and McCombie (2010a), Temple (2010) has largely ignored the main arguments that underlie the accounting identity critique of the estimation of production functions using value data. This criticism suggests that estimates of the parameters of aggregate production functions cannot be regarded as reflecting the underlying technology of the industry.]]></description>
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<title><![CDATA[Introduction to an Alternative History of Money]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1529]]></link>
<guid isPermaLink="false">1529</guid>
<pubDate>Thu, 03 May 2012 08:54:00 -0400</pubDate>
<description><![CDATA[This paper integrates the various strands of an alternative, heterodox view on the origins of money and the development of the modern financial system in a manner that is consistent with the findings of historians and anthropologists. As is well known, the orthodox story of money's origins and evolution begins with the creation of a medium of exchange to reduce the costs of barter.]]></description>
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<title><![CDATA[Modern Monetary Theory Explained: Mondern Monetary Theory Summit 2012, Rimini, Italy]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1528]]></link>
<guid isPermaLink="false">1528</guid>
<pubDate>Tue, 01 May 2012 13:25:00 -0400</pubDate>
<description><![CDATA[Guns and Butter, April 18, 2011.   2007 KPFA   Pacifica.]]></description>
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<title><![CDATA[Measuring Macroprudential Risk through Financial Fragility: A Minskyan Approach]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1527]]></link>
<guid isPermaLink="false">1527</guid>
<pubDate>Mon, 30 Apr 2012 11:28:00 -0400</pubDate>
<description><![CDATA[This paper presents a method to capture the growth of financial fragility within a country and across countries. This is done by focusing on housing finance in the United States, the United Kingdom, and France.]]></description>
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<title><![CDATA[Tracking the Middle-income Trap: What Is It, Who Is in It, and Why?]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1526]]></link>
<guid isPermaLink="false">1526</guid>
<pubDate>Mon, 30 Apr 2012 11:19:00 -0400</pubDate>
<description><![CDATA[This paper provides a working definition of what the middle-income trap is. We start by defining four income groups of GDP per capita in 1990 PPP dollars: low-income below $2,000; lower-middle-income between $2,000 and $7,250; upper-middle-income between $7,250 and $11,750; and high-income above $11,750.]]></description>
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<title><![CDATA[Managing Global Financial Flows at the Cost of National Autonomy: China and India]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1525]]></link>
<guid isPermaLink="false">1525</guid>
<pubDate>Thu, 26 Apr 2012 13:08:00 -0400</pubDate>
<description><![CDATA[The narrative as well as the analysis of global imbalances in the existing literature are incomplete without the part of the story that relates to the surge in capital flows experienced by the emerging economies. Such analysis disregards the implications of capital flows on their domestic economies, especially in terms of the "impossibility" of following a monetary policy that benefits domestic growth.]]></description>
</item>
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<title><![CDATA[Could Germany Leave the Eurozone?: Background Briefing: Ian Masters Interviews Dimitri B. Papadimitriou]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1523]]></link>
<guid isPermaLink="false">1523</guid>
<pubDate>Wed, 25 Apr 2012 15:09:00 -0400</pubDate>
<description><![CDATA[As stocks continue to plunge in Europe and on Wall Street, Masters and Papadimitriou revisit the malaise in the eurozone, where the cost of Spanish debt has reached unsustainable levels, austerity has proven to be disastrous, and there is no money for stimulus. Full audio of the interview is available here.]]></description>
</item>
<item>
<title><![CDATA[Productivity, the Miracle of Compound Interest, and Poverty: By Michael Hudson]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1524]]></link>
<guid isPermaLink="false">1524</guid>
<pubDate>Sun, 22 Apr 2012 15:40:00 -0400</pubDate>
<description><![CDATA[Naked Capitalism, April 22, 2012. Copyright   2006, 2007, 2008, 2009, 2010, 2011 Aurora Advisors Incorporated.]]></description>
</item>
<item>
<title><![CDATA[Eurozone Crisis 2.0]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1522]]></link>
<guid isPermaLink="false">1522</guid>
<pubDate>Wed, 18 Apr 2012 15:57:00 -0400</pubDate>
<description><![CDATA[Since last month's Greek bond swap, various European leaders have declared the eurozone crisis over or "almost over." But Euroland's current economic reality begs to differ.]]></description>
</item>
<item>
<title><![CDATA[Back to Business as Usual? Or a Fiscal Boost?]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1521]]></link>
<guid isPermaLink="false">1521</guid>
<pubDate>Sun, 15 Apr 2012 22:06:00 -0400</pubDate>
<description><![CDATA[Though the economy appears to be gradually gaining momentum, broad measures indicate that 14.5 percent of the US labor force is unemployed or underemployed, not much below the 16.]]></description>
</item>
<item>
<title><![CDATA[Beyond the Minsky Moment: Where We’ve Been, Why We Can’t Go Back, and the Road Ahead for Financial Reform]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1520]]></link>
<guid isPermaLink="false">1520</guid>
<pubDate>Tue, 10 Apr 2012 23:28:00 -0400</pubDate>
<description><![CDATA[In December 2007, when most analysts were confident that the subprime mortgage crisis would be "contained" without major impact on the financial system, a working paper issued by the Levy Institute concluded, "The stage is set for a typical Minsky debt deflation in which position has to be sold to make position-that is, the underlying assets have to be sold in order to repay investors. .]]></description>
</item>
<item>
<title><![CDATA[Using Minsky to Simplify Financial Regulation]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1519]]></link>
<guid isPermaLink="false">1519</guid>
<pubDate>Tue, 10 Apr 2012 22:13:00 -0400</pubDate>
<description><![CDATA[This monograph is part of the Institute's research program on Financial Instability and the Reregulation of Financial Institutions and Markets, funded by the Ford Foundation. Its purpose is to investigate the causes and development of the recent financial crisis from the point of view of the late financial economist and Levy Distinguished Scholar Hyman Minsky, and to propose "a thorough, integrated approach to our economic problems.]]></description>
</item>
<item>
<title><![CDATA[Improving Governance of the Government Safety Net in Financial Crisis]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1518]]></link>
<guid isPermaLink="false">1518</guid>
<pubDate>Tue, 10 Apr 2012 12:23:00 -0400</pubDate>
<description><![CDATA[This monograph is part of the Levy Institute's Research and Policy Dialogue Project on Improving Governance of the Government Safety Net in Financial Crisis, a two-year project funded by the Ford Foundation.

In the current financial crisis, the United States has relied on two primary methods of extending the government safety net: a stimulus package approved and budgeted by Congress, and a massive and unprecedented response by the Federal Reserve in the fulfillment of its lender-of-last-resort function.]]></description>
</item>
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<title><![CDATA[A Detailed Look at the Fed’s Crisis Response by Funding Facility and Recipient]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1517]]></link>
<guid isPermaLink="false">1517</guid>
<pubDate>Tue, 10 Apr 2012 10:49:00 -0400</pubDate>
<description><![CDATA[The extraordinary scope and magnitude of the financial crisis of 2007-09 required an extraordinary response by the Federal Reserve in the fulfillment of its lender-of-last-resort (LOLR) function. In an attempt to stabilize financial markets during the worst financial crisis since the Great Crash of 1929, the Fed engaged in loans, guarantees, and outright purchases of financial assets that were not only unprecedented, but cumulatively amounted to over twice current US GDP as well.]]></description>
</item>
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<title><![CDATA[Control of Finance as a Prerequisite for Successful Monetary Policy: A Reinterpretation of Henry Simons’s “Rules versus Authorities in Monetary Policy"]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1516]]></link>
<guid isPermaLink="false">1516</guid>
<pubDate>Mon, 09 Apr 2012 16:53:00 -0400</pubDate>
<description><![CDATA[Henry Simons's 1936 article "Rules versus Authorities in Monetary Policy" is a classical reference in the literature on central bank independence and rule-based policy. A closer reading of the article reveals a more nuanced policy prescription, with significant emphasis on the need to control short-term borrowing; bank credit is seen as highly unstable, and price level controls, in Simons's view, are not be possible without limiting banks' ability to create money by extending loans.]]></description>
</item>
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<title><![CDATA[A Quick Boost for the Economy-a $12 Minimum Wage: James K. Galbraith]]></title>
<link><![CDATA[http://www.levyinstitute.org/publications/?docid=1515]]></link>
<guid isPermaLink="false">1515</guid>
<pubDate>Fri, 06 Apr 2012 09:34:00 -0400</pubDate>
<description><![CDATA[The Real News Network, April 5, 2012. All original content copyright   The Real News Network.]]></description>
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