Home > Real-World Economics Review > issue no. 64 of real-world economics review

issue no. 64 of real-world economics review

Issue no. 64, 2 July 2013

You can download the whole issue as a pdf document by clicking  here  

In this issue: 

Is it a bubble?          download pdf           2     

          Steve Keen — A bubble so big we can’t even see it         download pdf          3

          Dean Baker – Are the bubbles back?          download pdf          11      

          Ann Pettifor – The next crisis          download pdf          15

          Michael Hudson – From the bubble economy to  . . . . .           download pdf          21

Rethinking economics using complexity theory          23
Dirk Helbing and Alan Kirman          download pdf

The fate of Keynesian faith in Joseph’s countercyclical moral          52
Douglas Grote              download pdf

A constructive critique of the Levy sectoral financial balance approach          59
Brett Fiebiger                download pdf

Capturing causality in economics and the limits of statistical inference          81
Lars Syll           download pdf

Money as gold versus money as water          90
Thomas Colignatus         download pdf

Constant returns to scale: Can the competitive economy exist          102
M. Shahid Alam             download pdf

Reassessing the basis of corporate business performance          110
Robert Locke                download pdf

Capitalism and the destruction of life on Earth          125
Richard Smith                           download pdf

Past contributors, submissions and etc.          152

  1. July 3, 2013 at 11:18 am

    Baker falls into a similar trap as Gavyn Davies of the FT on profits. See:


  2. July 3, 2013 at 5:23 pm

    Shahid Alam would find various papers by Bruce Kaufman of interest. Kaufman argues that without transactions cost, as in the theory of perfect competition, capitalist firms would not exist. Rather, everybody would become independent, self-employed artisans.

  3. David G Legge
    July 3, 2013 at 11:09 pm

    Great article by Steve Keen (A bubble so big …). The focus of the article is the role of debt in funding stock price appreciation since 1982. However, the graphs also show progressive increase in CPI corrected stock prices from 1950 to 1969 and then a correction (1969-1982) before the dramatic increases leading to the peaks of 2000, 2007 and now the rise of 2013. So what was happening 1950 to 1969 and 1969 to 1982? To what extent was the Long Boom funded by debt?

  4. July 4, 2013 at 3:27 am

    Outstanding paper by Helbing and Kirman on a new complexity paradigm for economics. This is the kind of thinking that many of us mathematical / scientific critics from outside economics have long called for.

    I would add that this work needs to build on the pioneering systems dynamics of the famous limits to growth studies, especially since the world economy is now experiencing the initial phase of these limits (oil and other resource limits, climate events, ecosystem damage, financial crises, civil strife, etc).

    Helbing and Kirman’s 11 recommendations are also a massive undertaking, ideally carried out through a new global initiative, with participation and funding from many countries and organizations, with a strong democratic component. Perhaps someone like Soros could be approached to get the ball rolling.

    A point to be emphasized is that the economic system they envision (decentralized or weakly coupled, self-organizing toward multiple objectives) actually requires unprecedented central data collections, planning, and regulation of the overall system itself. This is a tall order in a fractious world but also an unprecedented opportunity for a shift toward a culture of global democracy, away from global greed. The debt crisis that will follow the end of growth could become that opportunity, if not a devastating stage of collapse.

  5. July 11, 2013 at 9:19 am

    A friendly critique to Prof. M. Shahid Alam’s paper:

    On Constant Returns to Scale and Marx.

  1. October 6, 2020 at 5:49 pm

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