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by Paul Davidson

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ISBN:
184064740X
Author:
Paul Davidson
Category:
Economics
Language:
English
Publisher:
Edward Elgar Pub (September 1, 2002)
Pages:
304 pages
EPUB book:
1973 kb
FB2 book:
1126 kb
DJVU:
1887 kb
Other formats
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Rating:
4.6
Votes:
490


Markets, Money and the Real World by Paul Davidson is an informed and informative study of why the 1990s experienced a series of financial crises with terrible repercussions that reverberated throughout the global market

Markets, Money and the Real World by Paul Davidson is an informed and informative study of why the 1990s experienced a series of financial crises with terrible repercussions that reverberated throughout the global market.

Paul Davidson has played a central role in the development of Post Keynesian economics in the United States over the past several decades. This non-technical book provides a clear and practical introduction to the subject, beginning with Davidson's distinctive interpretation of Keynes. Interestingly, while it was published several years before the current crisis in financial markets, it sheds a great deal of light on what is going on today. I have only two mild criticisms

Start by marking Financial Markets, Money and the Real World as Want to Read .

Start by marking Financial Markets, Money and the Real World as Want to Read: Want to Read savin. ant to Read. It then identifies the creatio This book seeks to explain the financial crisis of the 1990s, explores its consequences, and considers the possibility of worse in the future.

Find many great new & used options and get the best deals for Financial Markets, Money and the Real . Great condition for a used book! Minimal wear. 100% Money Back Guarantee. Shipped to over one million happy customers.

Great condition for a used book! Minimal wear.

Authors: Paul Davidson. We aim to show you accurate product information. Manufacturers, suppliers and others provide what you see here, and we have not verified it. See our disclaimer. Financial Markets, Money and the Real World Format: Paperback Authors: Paul Davidson ISBN10: 1843764849 Published: 2003-07-28 Financial Markets, Money and the Real World. Edward Elgar Publishing.

Financial Markets, Money and the Real World," Books, Edward Elgar Publishing, number 2467, November. Handle: RePEc:elg:eebook:2467. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. More services and features.

Investigating why the 1990s was a decade of financial crises that almost precipitated a global market crash, this book explores the reasons why the global economy still struggles with the aftermath of these crises and discusses the possibility that volatile financial markets in the future will have real impacts on whole industries and national economic systems.

Find nearly any book by Paul Davidson. Get the best deal by comparing prices from over 100,000 booksellers. Investment in South East Asia: Law and Policy. by Paul Davidson, Franca Ciambella. ISBN 9789810087456 (978-981-00-8745-6) Softcover, n, 1998. Find signed collectible books: 'Investment in South East Asia: Law and Policy'.

Find sources: "Paul Davidson" economist – news · newspapers · books . Davidson and Sidney Weintraub founded the Journal of Post Keynesian Economics in 1978. Financial Markets, Money and the Real World, 2002.

Find sources: "Paul Davidson" economist – news · newspapers · books · scholar · JSTOR (May 2012) (Learn how and when to remove this template message). He is also a contributor to the Center for Full Employment and Stability. Are Fixed Exchange Rates the Problem and Flexible Exchange Rates the Cure?".

Paul Davidson is with Phillips, the world's third-largest auction house, located in London. The Post-Bubble US Economy: Implications for Financial Markets and the Economy. He is a regular contributor to Antique Collecting Magazine. The US is slowly recovering from the aftermath of the burst of the 'new economy' bubble - which was one of the worst in monetary history. Philip Arestis and Elias Karakitsos examine the causes and consequences of the burst of the 'new economy' bubble and investigate the impact on financial markets.

This book seeks to explain the financial crisis of the 1990s, explores its consequences, and considers the possibility of worse in the future. The book emphasizes the central role of domestic and international markets in determining the economic growth rate, unemployment levels, and the international payments position of capitalist economies. It then identifies the creation of liquid markets as a major tendency of these domestic and international markets, and as a key obstacle to efficiency and prosperity. Statistical evidence and theoretical analysis support the arguments against liberalizing markets. Davidson edits the Journal of Post Keynesian Economics . Annotation c. Book News, Inc., Portland, OR (booknews.com)
  • Bloodfire
Paul Davidson has played a central role in the development of Post Keynesian economics in the United States over the past several decades. This non-technical book provides a clear and practical introduction to the subject, beginning with Davidson's distinctive interpretation of Keynes. Interestingly, while it was published several years before the current crisis in financial markets, it sheds a great deal of light on what is going on today.

I have only two mild criticisms. First, the policy recommendations at the end of the book, while very appealing in theory, seem largely unrealistic in practice. Second, some explanation of Minsky's financial instability hypothesis would have been useful, beyond the brief allusion in Chapter 11.
  • Realistic
Paul Davidson comes to a series of correct conclusions about the connection between financial markets(national or international) and economic growth in the real sector of the economy,be it national economies or the world or international economy.However,the conclusions that he arrives at do not follow from the analysis that he has written in this book.Davidson correctly concludes that liquid financial markets will not be stable or optimal.However,he completely fails to tell the reader that his conclusions are redundant and had already been arrived at in a more general theoretical structure first by Smith in 1776 and then by Keynes in 1936.

Adam Smith,in his The Wealth of Nations,correctly stated a macroscopic Law of the Markets.It is composed of two parts.The first part deals with a type of an economy composed of individual saver-investors without any developed banking system and/or financial markets or an economy where these individual savers-investors do not make use of the existing banking system.The second part deals with a type of an economy with a private central bank,uniform currency,and a banking system where the individuals now place their savings in the banks.The banks now make the decision in how to allocate these savings to borrowers in the form of loans and/or long term lines of credit availability.Investment(I) will always equal savings(S) at an optimal position on the boundary of the Production Possibilities Frontier(PPF) curve if the economy is of the first type described above and there exists,in Smith's words," tolerable security "(limited uncertainty or ambiguity).However,the second type of economy will not obtain a position on the boundary of the PPF where I=S is an optimal result if either of the following kinds of policy outcomes are allowed to occur:(1)-The commercial banks make loans to projectors(Keynes's speculators-rentiers),prodigals,or imprudent risk takers.Smith makes it crystal clear that the savings will not be invested in productive outcomes that add to Gross national(domestic)product but will be"... wasted and destroyed".The economy will be operating at a position inside the PPF.Second,(2)the rate of interest on loans must be fixed in the long run at a relatively low rate permanently a little bit above the existing equilibrium rate charged to creditworthy(prime)customers.If either (1) or (2) is violated than long run economic growth,both nationally and internationally,will be sub optimal and the economy will not be operating on its boundary.It is obvious that Adam Smith's Law of the Markets is vastly more advanced than J B Say's later version,described by Keynes in the General Theory in 1936 as "Supply creates its own Demand" or "Income creates its own Expenditure ".

A careful reading of the last 3 chapters of the GT,especially pp.321-327,339-349,350-353,and 375-379 of the GT ,reveals that Keynes's conclusions are identical to those of A Smith-Maintain a low,fixed rate of interest permanently in the long run and cut off all loans /credit availability to speculators and rentiers.Keynes rejects Say's Law of the Markets but accepts the fully developed Law of A Smith once the condition about the existence of uncertainty(ambiguity) is made..

None of this analysis appears in Davidson's book except the correct rejection of J B Say's Law.Keynes's additional add on to Smith's theory is to show that ,in many instances,there will NOT be the " tolerable security "that Smith felt would lead individual decision makers to worry only about risk and not uncertainty.The interested reader should get his hands on The Modern Library edition (Cannan) and carefully study pp.294-340 of the WN,especially pp.339-340,where Smith adds on to his system of thought the above two conditions required for aggregate optimality that he did not discuss earlier in the book.

The world economy has been subjected to one financial crisis after another over the last 30 years precisely because the international currency and exchange markets,the World Bank,the International Monetary Fund,the Export-Import bank,the world's major commercial banks and financial institutions,the Federal Reserve System,etc., have been making hundreds of billions of dollar loans to speculators,prodigals,and imprudent risk takers while not making sufficient loans available to Smith's " sober" individuals ,who will make productive use of the savings and transform them into actual goods and services.This result is precisely and exactly what Smith predicted-the aggregate savings will be wasted and destroyed and no productive investment will occur.
Economists,such as Davidson and the Post Keynesians,are ignorant about Smith's Law,as well as Keynes's extension of it to deal explicitly with the uncertainty of the future by showing mathematically in chapter 21 of the GT that the existence of a speculative demand for money(M2,L2)>0 automatically means that the economy can not be on the boundary.Smith's Law of the Market is the same as Keynes's law of the market-unless the elasticities e and ed subscript ,on p.306 of the GT,equal 1,tolerable security will not exist because the speculators,imprudent risk takers,and prodigals are receiving massive loans to play their leveraged buyout games with that create the turbulence and volatility that has been established to exist by B.Mandelbrot over the last 50 years in one article after another.