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Financial market ‘pause party’ makes Fed rate cut less likely

Policy Notes No. 1

A Proposal to Create a European Safe Asset

While a consensus has formed that the eurozone’s economic governance mechanisms must be reformed, and some progress has been made on this front, what has been agreed to so far falls short of what is needed to address the central imbalances caused by the eurozone setup, according to Paolo Savona. The key elements that are […]

Strategic Analysis

Can Redistribution Help Build a More Stable Economy?

Although the ongoing recovery is about to become the longest in the history of the United States, it is also the weakest in postwar history, and as we enter the second quarter of 2019, many clouds have gathered. This Strategic Analysis considers the recent trajectory, the present state, and the future prospects of the US […]

Summary No. 2

Summary Spring 2019

This issue of the Summary features a public policy brief that considers the flaws in the eurozone’s settlement and payment system and a policy note that revisits the fall of Lehman Brothers ten years later. Working papers included in this issue discuss the construction of stock-flow-consistent models that consider the specific features of the economy they […]

Working Paper No. 925

An Institutional Analysis of China’s Reform of their Monetary Policy Framework

This paper traces the history of China’s reform of its monetary policy framework and analyzes its success and problems. In the context of financial marketization and the failure of the quantity-targeting framework, the People’s Bank of China transformed its monetary policy framework toward one that targets interest rates. The reform includes two important institutional changes: […]

Research Project Report

Investing in Early Childhood Education and Care in Kyrgyz Republic

Expansion of early childhood education and care (ECEC) services for all is a matter of the choices made regarding the allocation of public resources. As such, it is as much an issue of children’s well-being and gender equality as it is an issue of economic policy and fiscal allocation. This study—authored by Institute scholars Ipek […]

For Overspending Governments, an Alternative View on Borrowing Versus Raising Taxes

Bloomberg Quick Take with the Washington Post, March 13, 2019. All rights reserved. Outlining the basics of Modern Monetary Theory, Bloomberg's Katia Dmitrieva cites the work of Levy Research Associate Pavlina Tcherneva as a leading voice in the field. Read more: https://www.washingtonpost.com/business/for-overspending-governments-an-alternative-view-on-borrowing-versus-raising-taxes/2019/03/12/13945b5a-44dc-11e9-94ab-d2dda3c0df52_story.html?noredirect=on&utm_term=.ee3a91c52dc5

Public Policy Brief No. 147

Globalization, Nationalism, and Clearing Systems

As global market integration collides with growing demands for national political sovereignty, Senior Scholar Jan Kregel contrasts two diametrically opposed approaches to managing the tensions between international financial coordination and national autonomy. The first, a road not taken, is John Maynard Keynes’s proposal to reform the postwar international financial system. The second is the approach taken […]

Remembering Levy Institute Visiting Scholar and post-Keynesian economist, Nina Shapiro

Blog

Remembering Nina Shapiro

We are grieved to announce that Nina Shapiro, Professor of Economics Emeritus at St. Peter’s College, passed away on March 6. Nina was one of the first Levy Institute Visiting Scholars and a major contributor to the field of post-Keynesian economics. She passed away last week at the age of 71 from complications due to [...]

Press Release

Leading Economists and Policymakers to Discuss Increasing Financial Instability and Risk of Recession at the Levy Economics Institute’s 28th Annual Hyman P. Minsky Conference, April 17 at Bard College

Blog

Big Guns Shooting Holes in the Sky

The New Keynesian monetary mainstream has brought out the big guns. Paul Krugman, Kenneth Rogoff, and Larry Summers have come out to shoot down the rising star known as “MMT,” which stands for Modern Monetary Theory. For a while, it was academically convenient to withhold paying any public attention that could foster competition in the [...]