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In-progress research by Levy Institute scholars as well as outside contributors
1156 publications found, searching for 'Working Paper '
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Working Paper No. 1087July 30, 2025
A Model of External Debt Sustainability and Monetary Hierarchy
AbstractThe author develops a dynamic macroeconomic model of a small open economy to identify two key vulnerabilities that prevent emerging markets from fully integrating into global markets: high financial integration…more
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Working Paper No. 1086July 29, 2025
Financial Fragility Without Financial Instability
AbstractBetween the late 1990s and mid-2000s, China’s banking sector underwent a profound yet largely underappreciated transformation—arguably one of the most consequential episodes of financial restructuring in recent economic history. This…more
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Working Paper No. 1085July 17, 2025
Fiscal Deficit and Term Structure of Interest Rate Links on Corporate Investment
AbstractUsing high-frequency macro data from a financially deregulated regime, this paper examines whether there is any evidence of financial crowding out in India. The macroeconomic channel through which financial crowding…more
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Working Paper No. 1084July 09, 2025
MMT: Heuristics versus Paradigm Shift?
AbstractThis is a revised version of the keynote address presented at the FDR library for the Levy Institute Summer Seminar on Money, Finance, and Public Policy on June 20th, 2025.
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Working Paper No. 1083June 26, 2025
Integrating the Social Reproduction of Labor into Macroeconomic Theory: Unpaid Caregiving and Productivity in Paid Production
AbstractThe purpose of this paper is to contribute to the integration of unpaid caregiving in the household into short- and long-term macroeconomic theory and, in particular, the theoretical structure of…more
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Working Paper No. 1082May 12, 2025
Growth vs. Discipline: Italy’s Fiscal Dilemmas in a Stock-Flow Consistent Model
AbstractThis paper investigates the implications of the European Union’s revised fiscal governance framework for Italy, a country facing the dual challenge of high public debt and persistent economic stagnation. Using…more
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Working Paper No. 1081April 21, 2025
The Rise and Rise of Feminist Macroeconomics: Who’s Recognizing?
AbstractMacroeconomics is arguably the most male-dominated field within the discipline of economics. Since the mid-1990s, feminist economists have thoroughly and meticulously challenged this field through empirical and theoretical analyses and…more
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Working Paper No. 1080April 04, 2025
Protecting Social Security: The Case Against Extending the Full Retirement Age
AbstractThe Social Security “full retirement age” (FRA) is the age at which retirement income benefits are available without reduction for early commencement. Presently, that age is 67 for those born…more
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Working Paper No. 1079April 04, 2025
Job Allocation in the Levy Institute Microsimulation Model
AbstractThe Levy Institute Microsimulation Model (LIMM) is a tool used for policy simulations to estimate ex-ante the employment and income effects of sectoral investments. In Istenes (2023), a simple implementation…more
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Working Paper No. 1078April 01, 2025
“A Concentration of Private Power without Equal in History”
AbstractThis manuscript presents a detailed summary and reassessment of the 1941 final report of the Temporary National Economic Committee (TNEC). We portion the manuscript into four major parts: background, major…more
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Working Paper No. 1077February 11, 2025
A Critical Examination of the “China Collapse” Narrative
AbstractWestern media and academia have heralded the China collapse narrative. This paper provides a critical and balanced examination of the four challenges facing the Chinese economy—namely, deflation, debt, demographics, and…more
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Working Paper No. 1076February 07, 2025
The Rise of the Modern Monetary System
AbstractThis working paper integrates the credit money approach (associated with Post Keynesian endogenous money theory) with the state money approach (associated with Modern Money Theory) by drawing on Wray’s 1990…more
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Working Paper No. 1075January 23, 2025
The High Cost of the Strong Peso and Its Temporary Nature: The Case of Mexico
AbstractThe article analyzes why exchange rate stability has been prioritized in Mexico and why the national currency has appreciated; which policies and factors have made this possible, the costs and…more
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Working Paper No. 1074December 24, 2024
Political Conflict, Green Capabilities, and Growth Patterns in a Kaleckian Small Open Economy
AbstractThe paper presents a Kaleckian extended model exploring sustainable development, defined as growth that is economically stable, socially inclusive, and environmentally respectful. The model links CO2 emission trends with public…more
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Working Paper No. 1073December 18, 2024
Frankenstein in Fact and Fiction
AbstractThis paper is based on remarks delivered at the EDI Keynote Lecture at Bard College, November 19th, 2024: ‘Frankenstein in Fact and Fiction.’ View a recording of the lecture on YouTube….more
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Working Paper No. 1072December 12, 2024
Macro-Financial Models of Canadian Dollar Interest Rate Swap Yields
AbstractThis paper analyzes the dynamics of Canadian dollar–denominated (CAD) interest rate swap yields. It applies autoregressive distributive lag (ARDL) models, using monthly time series data, to estimate the effects of…more
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Working Paper No. 1071December 10, 2024
Tilting at Windmills
AbstractOriginally issued as EDI Working Paper No. 14, May 2023 The Central Bank of the United States, the Federal Reserve, has a dual mandate to maintain both full employment and…more
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Working Paper No. 1070December 10, 2024
Notes on Money as Technology
AbstractOriginally issued as EDI Working Paper No. 20, June 2024 Scholars and affiliates of the Levy Economics Institute have long demonstrated a granular understanding of the “operations” of money, which…more
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Working Paper No. 1069December 10, 2024
Tax Credits Are Industrial Policy
AbstractOriginally issued as EDI Working Paper No. 19, March 2024 The Inflation Reduction Act (IRA) is criticized for “derisking” private investment by increasing the gains to private firms. The derisking…more
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Working Paper No. 1068December 10, 2024
Monetary Power and Vulnerability to Sovereign Debt Crises
AbstractOriginally issued as EDI Working Paper No. 17, March 2024 This paper challenges the prevailing view in the sovereign debt literature by arguing that sovereign debt markets, in many respects,…more
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Working Paper No. 1067December 06, 2024
Revisiting the Foreign Debt Problem and the “External Constraint” in the Periphery
AbstractOriginally issued as EDI Working Paper No. 16, March 2024 Most debates and policy proposals about Global South countries’ external debt problem take for granted the view that it is…more
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Working Paper No. 1066December 06, 2024
Job Guarantee Program and the Kaleckian Dilemma
AbstractOriginally issued as EDI Working Paper No. 10, November 2023 Minsky (1965) has presented the Job Guarantee program as a recommendation in the war against unemployment and poverty. Kalecki (1943),…more
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Working Paper No. 1065December 06, 2024
Resource Constraints and Economic Policy
AbstractOriginally issued as EDI Working Paper No. 09, 2023 This paper explains the MMT approach for evaluating the affordability of spending programs, contrasting it with the mainstream approach. Using the…more
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Working Paper No. 1064December 06, 2024
Seismic Shifts in Economic Theory and Policy from the Bernanke Doctrine to Modern Money Theory
AbstractOriginally issued as EDI Working Paper No. 08, 2022 This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of…more
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