Summary Vol. 21, No. 3 | November 2012

Summary Fall 2012

The Levy Economics Institute is pleased to announce the release of the Fall 2012 Summary. Available in both printed and electronic form, the Summary updates current Levy Institute research, with synopses of new publications, accounts of professional presentations by the research staff, and an overview of Levy Institute events.

In this issue, papers survey the prospects for the US economy, examine the direction of US fiscal policy, analyze the ongoing crisis in the eurozone, discuss the effects of austerity measures in Greece, propose an alternative explanation of the LIBOR scandal, offer more effective measures of poverty, review developments in regulatory reform of the financial sector, present an alternative history of money, outline new issues in gender equality, and contribute to ongoing debates in areas ranging from financial instability to aggregate production functions.


Program: The State of the US and World Economies

  • DIMITRI B. PAPADIMITRIOU, GREG HANNSGEN, and GENNARO ZEZZA, Back to Business as Usual? Or a Fiscal Boost?
  • C. J. POLYCHRONIOU, The Mediterranean Conundrum: The Link between the State and the Macroeconomy, and the Disastrous Effects of the European Policy of Austerity
  • C. J. POLYCHRONIOU, Reconceiving Change in the Age of Parasitic Capitalism: Writing Down Debt, Returning to Democratic Governance, and Setting Up Alternative Financial Systems—Now
  • PHILIP PILKINGTON and WARREN MOSLER, Tax-backed Bonds—A National Solution to the European Debt Crisis
  • RAINER KATTEL and RINGA RAUDLA, Austerity that Never Was? The Baltic States and the Crisis
  • C. J. POLYCHRONIOU, The Greek Crisis: Possible Costs and Likely Outcomes of a Grexit
  • DIMITRI B. PAPADIMITRIOU and L. RANDALL WRAY, Euroland's Original Sin
  • JAN KREGEL, Six Lessons from the Euro Crisis
  • SUNANDA SEN, Managing Global Financial Flows at the Cost of National Autonomy: China and India
  • PAVLINA R. TCHERNEVA, Reorienting Fiscal Policy after the Great Recession
  • JÖRG BIBOW, The Euro Debt Crisis and Germany’s Euro Trilemma
  • GREG HANNSGEN, Fiscal Policy, Unemployment Insurance, and Financial Crises in a Model of Growth and Distribution
  • ESTEBAN PÉREZ CALDENTEY and MATÍAS VERNENGO, Toward an Understanding of Crises Episodes in Latin America: A Post-Keynesian Approach

Program: Monetary Policy and Financial Structure

  • JAN KREGEL, Minsky and the Narrow Banking Proposal: No Solution for Financial Reform
  • JAN KREGEL, The Wrong Risks: What a Hedge Gone Awry at JPMorgan Chase Tells Us about What’s Wrong with Dodd-Frank
  • JAN KREGEL, The LIBOR Scandal: The Fix Is In—the Bank of England Did It!
  • L. RANDALL WRAY, Global Financial Crisis: A Minskyan Interpretation of the Causes, the Fed’s Bailout, and the Future
  • THORVALD GRUNG MOE, Shadow Banking and the Limits of Central Bank Liquidity Support: How to Achieve a Better Balance between Global and Official Liquidity
  • THORVALD GRUNG MOE, Control of Finance as a Prerequisite for Successful Monetary Policy: A Reinterpretation of Henry Simons’s “Rules versus Authorities in Monetary Policy”
  • ÉRIC TYMOIGNE, Measuring Macroprudential Risk through Financial Fragility: A Minskyan Approach
  • L. RANDALL WRAY, Introduction to an Alternative History of Money
  • NICHOLAS APERGIS and EMMANUEL MAMATZAKIS, What Are the Driving Factors behind the Rise of Spreads and CDSs of Euro-area Sovereign Bonds? A FAVAR Model for Greece and Ireland
  • CHARLES J. WHALEN, Post-Keynesian Institutionalism after the Great Recession
  • JAN KREGEL, Diversity and Uniformity in Economic Theory as an Explanation of the Recent Economic Crisis

Program: The Distribution of Income and Wealth

Levy Institute Measure of Economic Well-Being

  • THOMAS MASTERSON, Simulations of Full-Time Employment and Household Work in the Levy Institute Measure of Time and Income Poverty (LIMTIP) for Argentina, Chile, and Mexico

Program: Gender Equality and the Economy

  • GÜNSELI BERIK and EBRU KONGAR, Time Use of Mothers and Fathers in Hard Times: The US Recession of 2007–09

Program: Employment Policy and Labor Markets

  • ANTOINE GODIN, Guaranteed Green Jobs, Sustainable Full Employment

Program: Economic Policy for the 21st Century

Explorations in Theory and Empirical Analysis

  • JESUS FELIPE, ARNELYN ABDON, and UTSAV KUMAR, Tracking the Middle-income Trap: What Is It, Who Is in It, and Why?
  • JESUS FELIPE and JOHN MCCOMBIE, Aggregate Production Functions and the Accounting Identity Critique: Further Reflections on Temple’s Criticisms and Misunderstandings
  • JESUS FELIPE and JOHN MCCOMBIE, Problems with Regional Production Functions and Estimates of Agglomeration Economies: A Caveat Emptor for Regional Scientists
  • MICHAEL HUDSON, Veblen’s Institutionalist Elaboration of Rent


  • New Master’s Degree Program in Economic Theory and Policy
  • 21st Annual Hyman P. Minsky Conference: Debt, Deficits, and Financial Instability

Upcoming Event:

  • The 2013 Hyman P. Minsky Summer Seminar


  • Publications and Presentations by Levy Institute Scholars
  • Recent Levy Institute Publications
Jonathan Hubschman Michael Stephens

Publication Highlight

Book Series
A Great Leap Forward
Heterodox Economic Policy for the 21st Century
Author(s): L. Randall Wray
January 2020

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