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  • Working Paper No. 916 October 02, 2018

    Unconventional Monetary Policies and Central Bank Profits

    Jörg Bibow
    Abstract

    This study investigates the evolution of central bank profits as fiscal revenue (or: seigniorage) before and in the aftermath of the global financial crisis of 2008–9, focusing on a select group of central banks—namely the Bank of England, the United States Federal Reserve System, the Bank of Japan, the Swiss National Bank, the European Central […]

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  • Working Paper No. 915 September 19, 2018

    Black Employment Trends since the Great Recession

    Thomas Masterson
    Abstract

    The Great Recession had a devastating impact on labor force participation and employment. This impact was not unlike other recessions, except in size. The recovery, however, has been unusual not so much for its sluggishness but for the unusual pattern of recovery in employment by race. The black employment–population ratio has increased since bottoming out […]

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  • One-Pager No. 57 September 10, 2018

    Stagnating Economic Well-Being Amid Rising Government Support

    Ajit Zacharias, Thomas Masterson, and Fernando Rios-Avila
    Abstract

    The Levy Institute Measure of Economic Well-Being (LIMEW) was designed to provide a more comprehensive understanding of the changes affecting household living standards. Ajit Zacharias, Thomas Masterson, and Fernando Rios-Avila summarize their latest research on the trends in economic well-being for US households. They reveal historic stagnation in LIMEW growth over the 2000–13 period, as […]

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  • Working Paper No. 914 September 05, 2018

    Quality of Match for Statistical Matches Using the American Time Use Survey 2013, the Survey of Consumer Finances 2013, and the Annual Social and Economic Supplement 2014

    Fernando Rios-Avila
    Abstract

    This paper describes the quality of the statistical matching between the March 2014 supplement to the Current Population Survey (CPS) and the 2013 American Time Use Survey (ATUS) and Survey of Consumer Finances (SCF), which are used as the basis for the 2013 Levy Institute Measure of Economic Well-Being (LIMEW) estimates for the United States. […]

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  • Working Paper No. 913 August 31, 2018

    German Economic Dominance within the Eurozone and Minsky’s Proposal for a Shared Burden between the Hegemon and Core Economic Powers

    Ignacio Ramirez Cisneros
    Abstract

    There is no disputing Germany’s dominant economic role within the eurozone (EZ) and the broader European Union. Economic leadership, however, entails responsibilities, especially in a world system of monetary production economies that compete with each other according to political and economic interests. In the first section of this paper, historical context is given to the […]

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  • Working Paper No. 912 August 29, 2018

    The Sources and Methods Used in the Creation of the Levy Institute Measure of Economic Well-Being for the United States, 1959–2013

    Ajit Zacharias, Thomas Masterson, and Fernando Rios-Avila
    Abstract

    This paper documents the sources of data used in the construction of the estimates of the Levy Institute Measure of Economic Wellbeing (LIMEW) for the years 1959, 1972, 1982, 1989, 1992, 1995, 2000, 2001, 2004, 2007, 2010, and 2013. It also documents the methods used to combine the various sources of data into the synthetic […]

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  • Working Paper No. 911 August 24, 2018

    Twenty Years of the German Euro Are More than Enough

    Jörg Bibow
    Abstract

    This paper reviews the performance of the euro area since the euro’s launch 20 years ago. It argues that the euro crisis has exposed existential flaws in the euro regime. Intra-area divergences and the corresponding buildup of imbalances had remained unchecked prior to the crisis. As those imbalances eventually imploded, member states were found to […]

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  • Working Paper No. 910 August 21, 2018

    Australian Government Bonds’ Nominal Yields

    Tanweer Akram, and Anupam Das
    Abstract

    The short-term interest rate is the main driver of the Commonwealth of Australia government bonds’ nominal yields. This paper empirically models the dynamics of government bonds’ nominal yields using the autoregressive distributed lag (ARDL) approach. Keynes held that the central bank exerts decisive influence on government bond yields because the central bank’s policy rate and […]

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  • Public Policy Brief No. 146 August 16, 2018

    Stagnating Economic Well-Being and Unrelenting Inequality

    Ajit Zacharias, Thomas Masterson, and Fernando Rios-Avila
    Abstract

    Ajit Zacharias, Thomas Masterson, and Fernando Rios-Avila update the Levy Institute Measure of Economic Well-Being (LIMEW) for US households for the period 2000–13. The LIMEW—which comprises base income, income from wealth, net government expenditures, and the value of household production—is aimed at achieving a more comprehensive understanding of trends in living standards. This policy brief […]

    Download Public Policy Brief No. 146, 2018 PDF (1.07 MB)
  • Research Project Report August 08, 2018

    The Measurement of Time and Consumption Poverty in Ghana and Tanzania

    Ajit Zacharias, Thomas Masterson, Kijong Kim, Tamar Khitarishvili, and Fernando Rios-Avila
    Abstract

    Time constraints that stem from the overlapping domains of paid and unpaid work are of central concern to the debates surrounding the economic development of developing countries in general and countries of sub-Saharan Africa in particular. Time deficits due to household production are especially acute in these countries due to the poor state of social […]

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  • Working Paper No. 909 July 02, 2018

    External Instability in Transition

    Liudmila Malyshava
    Abstract

    This inquiry argues that the successful completion of the transition process in the post-Soviet economies is constrained by the prevailing social structure and low levels of technological progress, both of which require institutional reforms aimed at increasing growth in national income, productivity, and the degree of export competitiveness. Domestic policy implementation has not shown significant […]

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  • One-Pager No. 56 June 19, 2018

    An Alternative to Sovereign Bond-Backed Securities for the Euro Area

    Mario Tonveronachi
    Abstract

    The European Commission's proposal for the regulation of sovereign bond-backed securities (SBBSs) follows the release of a high-level taskforce report, sponsored by the European Systemic Risk Board, on the feasibility of an SBBS framework. The proposal and the SBBS scheme, Mario Tonveronachi argues, would fail to yield the intended results while undermining financial stability. Tonveronachi articulates […]

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  • Public Policy Brief No. 145 June 08, 2018

    European Sovereign Bond-Backed Securities

    Mario Tonveronachi
    Abstract

    In response to a proposal put forward by the European Commission for the regulation of sovereign bond-backed securities (SBBSs), Mario Tonveronachi provides his analysis of the SBBS scheme and attendant regulatory proposal, and elaborates on an alternative approach to addressing the problems that have motivated this high-level consideration of an SBBS framework. As this policy […]

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  • Working Paper No. 908 June 01, 2018

    Twenty Years after the Fall of the Berlin Wall

    Walker F. Todd, and W. Lee Hoskins
    Abstract

    Many of the hopes arising from the 1989 fall of the Berlin Wall were still unrealized in 2010 and remain so today, especially in monetary policy and financial supervision. The major players that helped bring on the 2008 financial crisis still exist, with rising levels of moral hazard, including Fannie Mae, Freddie Mac, the too-big-to-fail […]

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  • Policy Notes No. 4 May 31, 2018

    Wage Employment and the Prospects of Women’s Economic Empowerment

    Ajit Zacharias, and Thomas Masterson
    Abstract

    In this policy note, Thomas Masterson and Ajit Zacharias address the nexus between wage employment, consumption poverty, and time deficits in the context of Ghana and Tanzania. Based on a recently completed research project supported by the Hewlett Foundation, the authors apply the Levy Institute Measure of Time and Consumption Poverty (LIMTCP) to estimate whether […]

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  • One-Pager No. 55 May 29, 2018

    The Job Guarantee and the Economics of Fear

    Pavlina R. Tcherneva
    Abstract

    The job guarantee (JG) is finally getting the public debate it deserves, according to Pavlina R. Tcherneva, and criticism is expected. Following the Levy Institute’s latest report analyzing the economic impact of a JG proposal and providing a blueprint for its implementation, Tcherneva responds to alarmist claims that the JG is (1) an expensive big-government […]

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  • Working Paper No. 907 May 17, 2018

    Some Comments on the Sraffian Supermultiplier Approach to Growth and Distribution

    Michalis Nikiforos
    Abstract

    The paper discusses the Sraffian supermultiplier (SSM) approach to growth and distribution. It makes five points. First, in the short run the role of autonomous expenditure can be appreciated within a standard post-Keynesian framework (Kaleckian, Kaldorian, Robinsonian, etc.). Second, and related to the first, the SSM model is a model of the long run and […]

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  • Working Paper No. 906 May 11, 2018

    The Dynamics of Japanese Government Bonds’ Nominal Yields

    Tanweer Akram, and Huiqing Li
    Abstract

    This paper employs a Keynesian perspective to explain why Japanese government bonds’ (JGBs) nominal yields have been low for more than two decades. It deploys several vector error correction (VEC) models to estimate long-term government bond yields. It shows that the low short-term interest rate, induced by the Bank of Japan’s (BoJ) accommodative monetary policy, […]

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  • Working Paper No. 905 May 08, 2018

    Reflections on the New Deal

    John F. Henry
    Abstract

    I subject some aspects of Roosevelt’s “New Deal” to critical analysis, with particular attention to what is termed “liberal democracy.” This analysis demonstrates the limits to reform, given the power of “vested interests” as articulated by Thorstein Veblen. While progressive economists and others are generally favorably disposed toward the New Deal, a critical perspective casts […]

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  • Policy Notes No. 3 May 01, 2018

    A Consensus Strategy for a Universal Job Guarantee Program

    L. Randall Wray
    Abstract

    The idea of a universal job guarantee (JG) policy for the United States has become the subject of renewed public debate due to a number of high-profile political endorsements. L. Randall Wray recently coauthored a report that presented a JG proposal—the Public Service Employment program—along with estimates of the economic impact of the plan. However, […]

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  • Working Paper No. 904 May 01, 2018

    Corporate Debt in Latin America and its Macroeconomic Implications

    Nicole Favreau-Negront, Luis Méndez Lobos, and Esteban Pérez-Caldentey
    Abstract

    This paper provides an empirical analysis of nonfinancial corporate debt in six large Latin American countries (Argentina, Brazil, Chile, Colombia, Mexico, and Peru), distinguishing between bond-issuing and non-bond-issuing firms, and assessing the debt’s macroeconomic implications. The paper uses a sample of 2,241 firms listed on the stock markets of their respective countries, comprising 34 sectors […]

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  • Research Project Report April 17, 2018

    Public Service Employment

    L. Randall Wray, Flavia Dantas, Scott Fullwiler, Pavlina R. Tcherneva, and Stephanie A. Kelton
    Abstract

    Despite reports of a healthy US labor market, millions of Americans remain unemployed and underemployed, or have simply given up looking for work. It is a problem that plagues our economy in good times and in bad—there are never enough jobs available for all who want to work. L. Randall Wray, Flavia Dantas, Scott Fullwiler, […]

    Download Research Project Report, April 2018 PDF (2.04 MB)
  • Working Paper No. 903 April 16, 2018

    The Economics of Instability

    Frank Veneroso
    Abstract

    The dominant postwar tradition in economics assumes the utility maximization of economic agents drives markets toward stable equilibrium positions. In such a world there should be no endogenous asset bubbles and untenable levels of private indebtedness. But there are. There is a competing alternative view that assumes an endogenous behavioral propensity for markets to embark on […]

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  • Strategic Analysis April 13, 2018

    “America First,” Fiscal Policy, and Financial Stability

    Gennaro Zezza, and Michalis Nikiforos
    Abstract

    The US economy has been expanding continuously for almost nine years, making the current recovery the second longest in postwar history. However, the current recovery is also the slowest recovery of the postwar period. This Strategic Analysis presents the medium-run prospects, challenges, and contradictions for the US economy using the Levy Institute’s stock-flow consistent macroeconometric […]

    Download Strategic Analysis, April 2018 PDF (1.30 MB)

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Bard College
Annandale-on-Hudson, NY 12504-5000
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The Levy Economics Institute of Bard College, founded in 1986 through the generous support of Bard College trustee Leon Levy, is a nonprofit, nonpartisan, public policy research organization. The Levy Institute is independent of any political or other affiliation, and encourages diversity of opinion in the examination of economic policy issues while striving to transform ideological arguments into informed debate.