Dottorato di ricerca – Lezioni prof. Sergio Cesaratto
Last update 7 May 2021
Outline of the lectures and references
Virtual room https://meet.google.com/wuq-kppa-qyu
Recording of the lecture 10 May 2021 https://drive.google.com/drive/folders/1kdukOCrF121S3KIb5XaLVMQfVWPc_0id?usp=sharing
Lectures 1 and 2 will be online. The remaining will be in presence 10-12 May (the timetable will be communicated asap). I ask you to keep the social distance, to wear the mask (and possibly to vaccinate).
The final text will likely consists of an online conversation on the topics.
Prof. Cesaratto can be contacted at his email address Cesaratto@unisi.it.
A link to some of the readings and to the PPP at the bottom including the draft of a book on growth theory that some of you might be find useful as lectures notes.
TEXTS MARKED WITH AN * ARE SUGGESTED/BASIC READINGS FOR THE EXAM
The lectures will concern heterodox growth theory, endogenous money, and the European crisis. The “red thread” of the lectures is that growth is demand-led, but that capitalism is inherently contradictory since an unequal income distribution is unable to sustain demand. The Power Point presentations will be distributed. A preliminary lecture will be devoted to the debate on pre-capitalist economic formations.
Pre-requisites (to be studied preferably before the course)
Garegnani, P. (1983), Notes on Consumption, Investment and Effective Demand, in Eatwell J. and M.Milgate (eds.) (1983), Keynes’s Economics and the Theory of Value and Distribution, London: Duckworth. (also in the CJE 1978-9)*
Harrod’s model in H.G. Jones, An introduction to modern theories of economic growth, chapter 2* (I will send a scanned copy to one of you). I will be very quick on Harrod, so please read this simple but fundamental chapter.
Cesaratto, S. (2020), Heterodox Challenges in Economics – Theoretical Issues and the Crisis of the Eurozone, Springer, http://www.springer.com/9783030544478, chapters 2, 3, 4, 5.*
Lecture 1 – 3 May
Controversies over pre-capitalist economic formations
Topics: Surplus approach, Polanyi, Marx, economic anthropology, archaeology, ancient history, New Institutional Economics.
References
Cesaratto , S. (2019), ‘Heterodox economics and Economic Anthropology: reflections prompted by two books’, Quaderni DEPS, no. 807 (this is a general survey: my first take of the topic, so not well written but informative)
Cesaratto, S., & Di Bucchianico, S. (2020) From the Core to the Cores: Surplus Approach, Institutions and Economic Formations, CSWP 45 (October 2020) forthcoming in Contributions to Political Economy)*
Cesaratto, S. and Di Bucchianico, S. (2020) The surplus approach, Polanyi and institutions in economic anthropology and archaeology, Working paper DEPS, n. 828 Aprile (forthcoming in Annals of the Fondazione Luigi Einaudi, p. 1-31, ISSN: 2532-4969: special issue “Marshall Sahlins’s Stone Age Economics, a Semicentenary Estimate”).
Sergio Cesaratto and Stefano Di Bucchianico (2021), The anatomy of the ape – A survey of institutions and economic analysis of the Greek-Roman economy (incomplete draft, do not circulate please) see below
Lectures 2 & 3 – 4 & 10 May
Growth theory I (Harrod: the father of modern growth theory. The problems with Solow’s model and Endogenous Growth Theory. Cambridge equation)
Topics: Harrod’s model – The problems left opened by Harrod – Solow’s model, the saving-investment relation and the capital theory controversy – What is Endogenous growth Theory really about? (quick digression) – The Cambridge equation
References:
H.G. Jones, An introduction to modern theories of economic growth, chapters 3 and 4*
- Cesaratto (2010), Endogenous growth theory twenty years on: a critical assessment, Bulletin of Political Economy, vol.4, n.1, working paper version Quaderni del Dipartimento di Economia politica, Università di Siena, n.559
Cesaratto S. (2015): ‘Neo-Kaleckian and Sraffian controversies on the theory of accumulation’ Review of Political Economy, 27 (2), pp. 154-182.*
Further readings
Cesaratto S. (con F.L.Serrano) (2002), As Leis de rendimento nas teorias neoclasica de crescimiento: Una critica Sraffiana, Revista Ensaios FEE, vol.23. (English version www.networkideas.org International Development Economics Association).
Cesaratto S. (1999), Savings and economic growth in neoclassical theory: A critical survey, Cambridge Journal of Economics, vol.23
Lecture 6 – 11 May (16-18)
Endogenous money, payment systems, monetary policy
Topics: The Keynesian Hypothesis of the independence of investment from capacity saving both in the short and in the long run- Endogenous and exogenous money; payment system and monetary policy.
References:
Cesaratto, S. (2020), Heterodox Challenges in Economics – Theoretical Issues and the Crisis of the Eurozone, Springer, http://www.springer.com/9783030544478, chapter 5, 6*
Cesaratto, S., & R. Pariboni (2021) Keynes’s finance, the monetary and demand-led circuits: a Sraffian assessment, WP DEPS n. 851.*
McLeay M., Amar, R. Ryland, T. (2014): ‘Money creation in the modern economy’, Bank of England, Quarterly Bulletin, No. 1.
Fullwiler, S.T. (2008) Modern Central Bank Operations – The General Principles, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1658232 *
Or alternatively:
Lecture notes prof. Cesaratto (in Italian), chapters 1, 2, 3. See below
Further readings on monetary policy:
Jakab, Z., Kumhof, M. (2015): ‘Banks are not intermediaries of loanable funds – and why this matters’, Bank of England, Working Paper No. 529.
Piti Disyatat, Monetary policy implementation: Misconceptions and their consequences, BIS Working Papers No 269, December 2008.
Further readings on PK monetary theory
Lavoie, M. The Monetary and Fiscal Nexus of Neo-Chartalism: A Friendly Critical Look. Journal of Economic Issues, 42, 2013: 1-32. Working paper version (2011) available at: http://www.boeckler.de/pdf/v_2011_10_27_lavoie.pdf
Cesaratto, S. (2017) Initial and final finance in the monetary circuit and the theory of Effective Demand. 2016, Metroeconomica, Volume 68, Issue 2, May , Pages: 228–258.
Cesaratto, S. (2016) The State Spends First: Logic, Facts, Fictions, Open Questions, Journal of Post Keynesian Economics, 39 (1), 44-71.
Cesaratto, S., & Di Bucchianico, S. (2020). Endogenous money and the theory of long-period effective demand. Bulletin of Political Economy, 14(1).
Lectures 4 and 5 – 11 ((h. 11-12) ) & 12 May (11-12)
Growth theory II (Neo-kaleckian models and the Sraffian Supermultiplier)
Topics: Neo-Kaleckian models (adjustment through changes in the degree of capacity utilisation) – The Sraffian criticism to the neo-kaleckian models – Kalecli’s external markets and the Sraffian Supermultiplier (lecture held in co-presence with prof. R.Pariboni) – Demand-led models and endogenous money.
References:
Cesaratto S. (2015): ‘Neo-Kaleckian and Sraffian controversies on the theory of accumulation’ Review of Political Economy, 27 (2), pp. 154-182.*
Lavoie M. (2006) Introduction to Post-Keynesian Economics, Palgrave Macmillan, cap. 5.*(ask the prof).
Kalecki, M. (1967) The problem of effective demand with Tugan-Baranowski and Rosa Luxemburg, in: Selected Essays on the Dynamics of the Capitalist Economy 1933 – 1970 (Cambridge: Cambridge University Press, 1971).*
Cesaratto S. (con Serrano F., Stirati A.) (2003), Technical Change, Effective Demand and Employment, Review of Political Economy, vol.15.*
Serrano, F, Freitas, F, Bhering, G. The Trouble with Harrod: The fundamental instability of the warranted rate in the light of the Sraffian Supermultiplier. Metroeconomica. 2019; 70: 263– 287. https://doi.org/10.1111/meca.12230 *
Readings suggested by prof. Pariboni:
Freitas, F. and F. Serrano (2015), ‘Growth rate and level effects, the stability of the adjustment of capacity to demand and the Sraffian supermultiplier’, Review of Political Economy, 27 (3), 258-281.
Lavoie, M. (2016), ‘Convergence towards the normal rate of capacity utilization in Neo-Kaleckian models: The role of non-capacity creating autonomous expenditures’, Metroeconomica, 67 (1), 172-201.
Further readings
Garegnani, P. (1992) Some notes for an analysis of accumulation, in: J. Halevi, D. Laibman & E. Nell (Eds) Beyond the Steady-State, (Basingstoke: Macmillan).
Hein, E., Lavoie, M. & van Treeck, T. (2012) Harrodian instability and the ‘normal rate’ of capacity utilization in Kaleckian models of distribution and growth—a survey, Metroeconomica, 63, pp. 139–169.
Vianello, F. (1989) Effective demand and the rate of profits. Some thoughts on Marx, Kalecki and Sraffa, in: M. Sebastiani (Ed.) Kalecki’s Relevance Today (London: Macmillan).
Readings suggested by prof. Pariboni:
Freitas, F. and F. Serrano (2015), ‘Growth rate and level effects, the stability of the adjustment of capacity to demand and the Sraffian supermultiplier’, Review of Political Economy, 27 (3), 258-281.
Lavoie, M. (2016), ‘Convergence towards the normal rate of capacity utilization in Neo-Kaleckian models: The role of non-capacity creating autonomous expenditures’, Metroeconomica, 67 (1), 172-201.
Materials
PP Presentations:
Dottorato 2021 Lecture 1 precapitalist formations 2 (updated 3 May 2021)
Dottorato 2021 Lecture 2 endogenous money
PPP1 PPP2 (updated 3 May 2021)
Summing up 2nd lecture (7 May 2021)
PPP3 (updated 7May 2021)
PPP4 (updated 7 May 2021)
Presentation by Prof. Pariboni The Sraffian Supermultiplier (12 May 2021)
Other materials:
Sergio Cesaratto and Stefano Di Bucchianico (2021), The anatomy of the ape – A survey of institutions and economic analysis of the Greek-Roman economy
Lecture notes on endogenous money and monetary theory prof. Cesaratto (in Italian), chapters 1, 2, 3.Moneta capitolo 3 draft Moneta capitolo 2 draft Moneta capitolo 1 draft
Jones, An introduction…JonesEcGrowth
Some of you might find these chapters useful:
S.Cesaratto, Modern growth theories, orthodox and heterodox (provisional chapters of a book with prof. R.Pariboni):
Chap. 1 – Introduction (read carefully); Ch. 1 Growth book
Chap. 2 – Harrod-Domar (study carefully); Chapter 2 H&D
Chap. 3 – Solow (study carefully); Chapter 3 Solow (only sections 3.2/3/4/5/6; analytical arguments using the Cobb-Douglas in the boxes can be omitted) Fig 3.3 & 3.4 corrected
Chap. 4 – Endogenous growth theory (only intro and sect.s 4.1/2/3/4, 4.13 optional; boxes where necessary); Chapter 4 EGT
Chap. 5 – Heterodox models; Chapter 5 PK models**
Chap. 7 – Supermultiplier (the chapter is unfinished, you will likely be given a summary note). SHORT note on the supermultiplier**