Theories of scientific rationality typically pertain to belief. In this paper, the author argues that we should expand our focus to include motivations as well as belief. An economic model is used to evaluate whether science is best served by scientists motivated only by truth, only by credit, or by both truth and credit. In many, but not all, situations, scientists motivated by both truth and credit should be judged as the most rational scientists.

Summary This article, in order to advance the debate about the nature of Roman money, sets out the strongest arguments in favour of the crucial importance of credit-money in the Roman economy. It invokes some texts that were not employed in previous discussions. The article also replies to the chief arguments of those scholars who have more or less maintained the traditional view that all, or almost all, Roman money consisted of coins. The most important question here concerns (...) trust and information: to what extent did Romans know enough about those who owed them money to accept payment in documentary form? On this question, the author takes the ‘optimistic’ view. (shrink)

Name der Zeitschrift: Journal of Ancient History Jahrgang: 5 Heft: 1 Seiten: 134-178.

This paper contends that Marx develops in Volume III of Capital an incisive conceptual framework in which excessive credit creation, indebtedness and speculation play a critical and growing role in the reproduction of social capital on an extended basis; however, given the decentralised and anarchic nature of capitalist production, the credit system does so in a highly erratic and contradictory manner which only postpones the inevitable day of reckoning. The paper also highlights Marx's relatively neglected but highly important (...) analysis of the separation of ownership from management in the advanced capitalism of his day, England, and its modern-day implications for excessive risk-taking and debt-fuelled speculation up until the eve of the crash. More importantly, the paper argues that in Volumes II and III, Marx implicitly connected the expanding role of credit (which he associated with the development of capitalism) to a significant reduction in the turnover period of capital, thereby boosting the rate of surplus-value, and countering in a highly erratic and contradictory manner, the fall in the rate of profit. The growing role of credit has been relatively ignored in the Marxian literature as an important counteracting factor to the law of the declining rate of profit. It is not mentioned at all by Marx in his famous Chapter XIV, Vol. III of Capital where he discusses other important counteracting forces to the falling rate of profit, nor by Engels (in this particular context) who edited both Volumes II and III. (shrink)

As Social Economy financial institutions, credit unions have traditionally been considered less efficient than traditional banking entities. However, like banks and savings banks, they have to be as efficient and competitive as possible to survive in today’s business environment, especially at times of crisis. To date, there have been very few studies on their efficiency and practically none for the crisis period. Moreover, almost all the existing studies assess only financial efficiency, without considering their social function. This study (...) examines the levels of both financial and social efficiency in Spanish credit unions as well as their main determinants during the recent crisis. We apply the two-stage double bootstrap data envelopment analysis methodology based on panel data corresponding to all the credit unions active in Spain between 2008 and 2013. The empirical results indicate that financial and social efficiency achieved an acceptable level, although on average the former was slightly greater than the latter. We also find that both age and merger and acquisition activity were positively influential on the financial efficiency of credit unions but had a significant negative effect on their social efficiency. Moreover, the regional location of such entities and the financial crisis were also crucial determinants of both types of efficiency. Our findings are therefore useful for all the stakeholders of credit unions to know if these entities have been efficient according to a double bottom line accounting in the crisis period and hence to maintain successful social management that is compatible with satisfactory financial efficiency. (shrink)

Do activist trade and industrial policies offer developing countries a viable alternative to either neoliberal or mercantilist development regimes? We hope to answer the question by, first, distinguishing the “open economy industrial policies” in vogue today from either their “closed economy” predecessors—i.e., import-substituting industrialization—or more orthodox approaches to development policy making; second, tracing the growth of nontraditional exports from Latin America and the Caribbean to the diffusion of more active approaches in the 1990s; and, third, accounting for activism’s (...) apparent success in an otherwise inauspicious spatial and temporal context by identifying three distinct limits to rent-seeking in the open economy: infant exporter maturation; the costs of government support; and the reactions of foreign rivals. (shrink)

As Social Economy financial institutions, credit unions have traditionally been considered less efficient than traditional banking entities. However, like banks and savings banks, they have to be as efficient and competitive as possible to survive in today’s business environment, especially at times of crisis. To date, there have been very few studies on their efficiency and practically none for the crisis period. Moreover, almost all the existing studies assess only financial efficiency, without considering their social function. This study (...) examines the levels of both financial and social efficiency in Spanish credit unions as well as their main determinants during the recent crisis. We apply the two-stage double bootstrap data envelopment analysis methodology based on panel data corresponding to all the credit unions active in Spain between 2008 and 2013. The empirical results indicate that financial and social efficiency achieved an acceptable level, although on average the former was slightly greater than the latter. We also find that both age and merger and acquisition activity were positively influential on the financial efficiency of credit unions but had a significant negative effect on their social efficiency. Moreover, the regional location of such entities and the financial crisis were also crucial determinants of both types of efficiency. Our findings are therefore useful for all the stakeholders of credit unions to know if these entities have been efficient according to a double bottom line accounting in the crisis period and hence to maintain successful social management that is compatible with satisfactory financial efficiency. (shrink)

Credit unions are one of the most widely established corporate entities in the financial systems of most of the world’s nations. Their historical support to the financing needs of small savers, as well as their assimilation into the framework of contemporary microfinance, gives them an important specific weight in the economic-financial literature of our time. In this sense, our research has carried out a systematic review of the main contributions focused on the area of credit unions over the (...) period 1936–2020, using Scopus and WoS as bibliographic databases. In summary, the main countries, journals, authors, articles, and the main collaborative research networks at the level of authors or countries have been analyzed. In the same way, the implementation of strategic diagrams based on Callon’s procedure has facilitated the classification of the most important terms linked to financial cooperativism, which has served to detect future lines of research related to the terms : asymmetric-information, capital-provision, cooperative-principles, customer-reduction, gender-issues, neoinstitutionalism, poverty, and urban-economy. (shrink)

This work approaches the phenomenon of guild socialism from a new perspective, focusing on the Douglas Social Credit movement. It explores the key ideas, gives an overview of the main theories and traces their subsequent history. Thoroughly researched, it provides original material relevant to the field of political economy. This early approach to non-equilibrium economics reveals the extent of the incompatibility between capitalist growth economics and social and environmental sustainability.

This article concerns freedom and financial markets. First, I consider the republican case for liberalization, extending Robert Taylor’s economic model of republicanism to financial markets. This case adopts what I call a “philosopher-king” approach to political theory, arguing by reference an ideal or first-best set of policies or reforms. Then, I investigate the negative externalities of several decades of financial market liberalization, including the erosion of political accountability and the growing concentration of political and economic power in the hands of (...) those best suited to profit from the rise of finance. From this “political economy” perspective, the impact of liberalization is clear: we paid for greater access to credit with political and economic domination. In republican terms, we traded freedom for credit. My analysis, moreover, has implications for republican debates on freedom and the market. In second-best worlds, where reforms will almost certainly be incremental, shaping the balance of power in ways that impact future policy, judging reforms by reference to a vision of domination-free markets will often suggest policies that make individuals less free. The political economy approach is far more relevant to debates about which economic institutions further or hinder freedom as non-domination. (shrink)

There is a commonly made distinction between two types of scientists: risk-taking, trailblazing mavericks and detail-oriented followers. A number of recent papers have discussed the question what a desirable mixture of mavericks and followers looks like. Answering this question is most useful if a scientific community can be steered toward such a desirable mixture. One attractive route is through credit incentives: manipulating rewards so that reward-seeking scientists are likely to form the desired mixture of their own accord. Here I (...) argue that this idea is less straightforward than it may seem. Interpreting mavericks as scientists who prioritize rewards over speed and risk, I show in a deliberatively simple model that there is a fixed mixture which is not particularly likely to be desirable and which credit incentives cannot alter. I consider a way around this result, but this has some major drawbacks. I conclude that credit incentives are not as promising a way to create a desirable mixture of mavericks and followers as one might have thought. (shrink)

Starting from MacIntyre’s virtue ethics, we investigate several codes of conduct of banks to identify the type of virtues that are needed to realize their mission. Based on this analysis, we define three core virtues: honesty, due care, and accuracy. We compare and contrast these codes of conduct with the actual behavior of banks that led to the credit crisis and find that in some cases banks did not behave according to the moral standards they set themselves. However, although (...) banks and the professionals working in them can be blamed for what they did, one should also acknowledge that the institutional context of the free market economy in which they operated made it difficult to live up to the core values lying at the basis of the codes of conduct. Given the neo-liberal free market system, innovative and risky strategies to enhance profits are considered desirable for the sake of shareholder’s interests. A return to the core virtues in the financial sector will therefore only succeed if a renewed sense of responsibility in the sector is supported by institutional changes that allow banks to put their mission into practice. (shrink)

Starting from MacIntyre’s virtue ethics, we investigate several codes of conduct of banks to identify the type of virtues that are needed to realize their mission. Based on this analysis, we define three core virtues: honesty, due care, and accuracy. We compare and contrast these codes of conduct with the actual behavior of banks that led to the credit crisis and find that in some cases banks did not behave according to the moral standards they set themselves. However, although (...) banks and the professionals working in them can be blamed for what they did, one should also acknowledge that the institutional context of the free market economy in which they operated made it difficult to live up to the core values lying at the basis of the codes of conduct. Given the neo-liberal free market system, innovative and risky strategies to enhance profits are considered desirable for the sake of shareholder’s interests. A return to the core virtues in the financial sector will therefore only succeed if a renewed sense of responsibility in the sector is supported by institutional changes that allow banks to put their mission into practice. (shrink)

The history of Credit Rating Agencies [CRAs], commonly called Rating Agencies, has a long and distinguished trajectory marked by influence, reputation and power. Due to the ability of this field to instigate significant changes in market regulations and actions of economic actors, this subject is extensively debated within the literature. In economic sociology, while some studies have focused on perceptions of performativity and market devices to understand how the calculability of its methods influences the economy, others, along relational (...) lines of sociology, aim to understand them through a more complex constructive process. In this study, we attempt to fill a gap by exploring the complementarity between two theoretical approaches to sociology: theory of fields and performativity. Thus, we mobilize theory of fields to understand the inter-field relationship between the State and CRAs. Specifically, this paper sets out to i) analyze the co-constitution of the state and market fields with the field of CRAs; ii) describe the existing regulation and situate the CRAs and their classification devices in the broader history of the State and the market; iii) analyze how the legitimation of the CRAs by the State generates broader social contexts that assist in the performative work of the CRAs. Based on historical documentary research, we analyze some of the main milestones and regulatory events in the field of CRAs. This research reaffirms the assumption that even after credibility crises, the State is the most significant predictor of legitimacy, power, and influence that CRAs hold to date. The legitimacy of this power and influence has yet to be exhausted because the reputation of CRAs is rooted in the reputation of the State itself. This happens because the State provides essential actions (such as regulations) for the existence of the financial market. Thus, results suggest that the State, through regulatory measures, can engage several other fields to promote the legitimacy of performative work of the CRAs, whose purpose is to provide calculation tools to shape markets. (shrink)

Adding to contemporary debates about the relationship between financialization and neoliberalism, this article investigates their entanglement at the level of subjectivity. Primarily, the article argues that financialization and neoliberalism are converging to produce a new form of subjectivity, post-profit homo œconomicus, an always indebted but credit-seeking enterprise. The value of this approach, the article demonstrates, is that it provides theoretical tools capable of grasping the differential production of subjectivity across the uneven and unequal striations of contemporary neoliberal society, from (...) precarious workers of the gig economy to financial sector elites. The article examines two figures who have become central to public and academic debates about neoliberalism and financialization – the low-waged, precarious worker and the indebted student – to consider how neoliberal subjectivity is produced and distributed unevenly. It concludes that within these fragmentary socioeconomic positions are different instantiations of always indebted but credit-seeking human capital. (shrink)

Read Miguell Ramirez's original paper Credit, Indebtedness and Speculation in Marx's Political Economy...

Uses Sir Karl Popper’s philosophy of critical rationalism to examine the discussion of the UK ‘credit crunch’ as presented by the public record of the UK House of Commons Treasury Select Committee’s investigation. Identifies various philosophical doctrines that acted to shape that investigation and the testimony presented before it. Presents those doctrines as prejudicial to the advancement of knowledge, learning and rationality. Concludes that the philosophy of critical rationalism is relevant to the problems of modern society.

Goodchild offers a philosophical analysis of the contemporary economy in terms of the way it structures credit and faith.

This article uses the “Green Credit Guidelines” issued in 2012 as a quasi-natural experiment, using the statistics of A-share listed companies from 2008 to 2017, using the PSM-DID model to examine the effect and mechanism of green credit policies on the investment efficiency of heavily polluting companies, and taking into consideration the heterogeneous influence of the financial ecological environment on the relationship between the two. The research indicates that, after the Green Credit Guidelines were promulgated, the investment (...) efficiency of heavy-polluting companies has been slightly improved compared with non-heavy-polluting companies and that the impact is more obvious in regions with better financial ecological environment. The research conclusions confirm the beneficial effects of the Green Credit Guidelines policy on the prudent investment of companies that cause serious pollution to the environment and improve investment efficiency, a provision of empirical evidence for financial leverage to drive the green economy transformation. (shrink)

The purpose of this article is to present and discuss some of the best practices of financial industry, in three emerging economies: Colombia, Ecuador, and Peru. The main thesis is that, notwithstanding the importance of certain specific deficiencies, such as an inadequate regulatory context or the lack of financial education among the population, the main factor that explains the low banking levels in emerging and developing economies, affecting mostly lower-income segments, is the use of inefficient financial service distribution models. In (...) connection with this thesis, we will try to show that traditional financial institutions, both in developing countries and in the advanced economies have a special social responsibility to help create an efficient financial system that makes saving and borrowing instruments available to the greatest possible number of citizens. (shrink)

Households and banks have increasingly displaced non-financial businesses and governments as the primary debtors in modern capitalist economies, resulting in more severe economic cycles, increased inequality, and external macroeconomic imbalances. Yet while the trend is nearly universal among developed economies, its intensity varies a great deal from country to country. This article highlights the common international causes behind the global expansion of household and financial sector debt; the divergent national approaches to household credit that cause household and financial sector (...) indebtedness to vary from country to country; and the likely causes of these disparate approaches. National approaches to interest rate restrictions, property transfer taxation, high loan-to-value mortgages, mortgage interest taxation, and secondary markets for consumer debt can either encourage or mitigate household and financial sector borrowing. Whether a country encourages or mitigates such credit is determined by an idiosyncratic mix of institutional, political, and ideational factors. Especially important are the size of domestic pension funds, banks’ preferred business models, the political power of financial firms, and whether policymakers are more sensitive to the gains promised by a credit-fueled expansion or to the risks posed by an overleveraged collapse. (shrink)

In this paper I propose a series of hypotheses for further study that are related to potential negative impacts of non-traditional export agriculture (NTEA) on peasantfarmers in Central America. International lenders and donor agencies are promoting this diversification of agricultural exports as part of structural adjustment programs in the region, in order to increase foreign exchange earnings and raise the incomes of the rural poor.There is growing evidence, however, that the impact on the rural poor may not be favorable. I (...) argue that because NTEA can introduce powerful economies of scale, it is likely to accelerate social differentiation in the countryside and expel large numbers of peasant farmers from their lands. In this sense NTEA may be similar to previous export ‘booms,’ leading to rapid intensification of social instability and conflict in an already troubled region. This raises the serious question of the long term sustainability of this development strategy.There is a shortage of published studies that directly address these issues, making further work essential for the adequate review of NTEA policies. I formulate six testable hypotheses based on the economies of scale associated with NTEA. Each is related to a resource essential for successful agricultural production: land; credit; prices, costs, and subsidies; technology; technical assistance; and markets. I suggest that as NTEA grows, small farmer access to each is reduced, eventually making peasant production for domestic consumption an unviable alternative, while those who venture into NTEA encounter unacceptable levels of risk. (shrink)

Credit distribution is uneven in the domestic financial market since it is relatively easy for listed companies, mainly state-owned enterprises, to obtain banks’ funds. Unbalanced credit distribution has caused some listed companies to participate in “Borrow to Lend” activities. Based on the traditional “financing priority” theory and credit rationing theory, this paper studies the “Borrow to Lend” shadow banking activities of China’s non-financial listed companies based on the 2007–2018 financial statement data of Chinese-listed companies and discusses the (...) micro-level and macro-level related factors behind this activity. The empirical results show that China’s non-financial listed companies, especially the state-owned enterprises, are participating in obvious “Borrow to Lend” activities. The real economy’s rate of return shows a negative relationship with “Borrow to Lend” activities at the level of individual companies and their industries. This article uses the exogenous growth part of M2 growth to measure monetary policy tightness in terms of macro and credit policies. It uses the ratio of state-owned enterprise loans to total corporate loans as an approximate indicator of the credit distribution structure. The empirical results indicate that state-owned enterprises’ “Borrow to Lend” activities have shifted in the same direction as the tightening of monetary policy after the financial crisis. The proportion of state-owned enterprise loans positively correlates with state-owned enterprises’ “Borrow to Lend” activities. (shrink)

ABSTRACT Asset‐market bubbles occur dependably in laboratory experiments and almost as reliably throughout economic history—yet they do not usually bring the global economy to its knees. The Crash of 2008 was caused by the bursting of a housing bubble of unusual size that was fed by a massive expansion of mortgage credit—facilitated, in turn, by the longest sustained expansionary monetary policy of the past half century. Much of this mortgage credit was extended to people with little net (...) wealth who made slender down payments, so that when the bubble burst and housing prices declined, their losses quickly exceeded their equity. These losses were transmitted to the financial system—including banks, investment banks, insurance companies, and the institutional and private investors who provided liquidity to the mortgage market through structured securities. It seems that many of these institutions became insolvent; it is certain that they became illiquid. Liquidity loss and solvency fears created a feedback cycle of diminished financing, reduced housing demand, falling housing prices, more borrower losses, and further damage to the financial system and eventually the stock market and the real economy. There are important parallels with the housing and financial‐market booms that led up to the Crash of 1929 and the Great Depression. (shrink)

Contemporary general equilibrium theory is characteristically short-run, separated from monetary aspects of the economy, and as such does not deal with long-run problems such as capital accumulation, innovation, and the historical movement of the economy. These phenomena are discussed by growth theory, which assumes a given or shifting production function, and in turn cannot therefore deal with the fundamental problem of growth, namely how the production function is derived. Thus traditional theories have a common weakness in that they (...) divorce real economic growth from the activities of the financial sector. This book provides a much-needed synthesis of growth theory and monetary theory. Professor Morishima draws on the work of Schumpeter, Keynes and the pre-war neoclassical economists to formulate a capital-theoretic general equilibrium theory. (shrink)

Les débats entre libéraux sur la justice sociale ont beaucoup alimenté la réflexion contemporaine sur le revenu de base (ou allocation universelle). Cette notion est présentée ici comme relevant de « l’économie de l’égalitarisme libéral », dont le point d’ancrage se situe dans l’œuvre philosophique de Rawls. Celui-ci n’est certes pas partisan de l’allocation universelle, mais sa pensée offre néanmoins un cadre général adéquat pour l’étudier, en particulier par la hiérarchie des principes de justice qu’il défend (1). Au troisième niveau (...) de cette hiérarchie, l’interprétation à donner au « principe de différence » a suscité la controverse des « surfeurs de Malibu », par laquelle Van Parijs a pu défendre le caractère inconditionnel de l’allocation universelle (2). Reste alors à passer de la philosophie à l’économie du revenu de base, en montrant comment ce dernier peut être considéré comme une variante précise d’impôt négatif sur le revenu. A ce stade, une relecture de l’intuition de Friedman sur la question aboutit à considérer l’allocation universelle comme un « crédit d’impôt universel » (3). En conclusion, pour les démocraties libérales et dans le cas de la France, sont esquissées quelques observations prospectives sur une éventuelle application d’une telle conception du revenu de base (4). (shrink)

Taking credit for digitalization and platformization, China has initiated its open science infrastructure implementation and made an effort to focus on open access (OA) journals and data sharing over the past two decades. With the continuous development need, issues and concerns have caught in attention, including data accessibility, research transparency, general population awareness and communication of science, public trust in science, and scientific research and innovation efficiency. This paper has unfolded the maze of open science stance in China and (...) elaborated on its current economy, openness and freedom extents, and future innovation potential towards a global open science community, within depth and scope of both the Chinese and Western scholars’ interpretations. (shrink)

Ethicmentality is an innovative book. It blends ethics with mentality to capture the interdependence of ethical life and social life creatively. The book is also innovative because of the way this interdependence is explored. By focusing on practical ethical behavior in today’s economy, business, and society, Michela Betta has advanced an understanding of ethics freed from the burden of moral theory. By introducing a new type of analysis this book also contributes to methodological innovation. Familiar issues are revisited through (...) the notion of ethicmentality. Capitalist economy is presented in terms of a mentality embedded in society, culture, and politics. Government is revealed as mentality about how to govern economically through market freedom rather than human rights. The rise of the financial economy is described as challenging the traditional capitalist mentality of equal opportunities. A money mentality around debts and owing is perceived as having replaced credit and owning, and the rise of corporation managers as having destroyed the old mentality of ownership. Ethicmentality shows the potential of constructive critique from economic, business, and society perspectives. It also breaches traditional limits by developing the idea of ethical capital and entrepreneurial ethics. Ethical thinking is infused with the Aristotelian notion of virtues and moderation to reflect about modern work. Ethicmentality helps us see the complexity of social and personal life. Given the pervasive nature of mentality and ethics’ focus on individual deliberation, ethicmentality represents their productive combination, a new blend for ethical and social analysis. (shrink)

Known as the "economist's economist" for his work on creating a synthetic economic theory, Swedish economist Knut Wicksell was a controversial, but highly influential figure in modern economic thought. His contributions to marginal productivity theory, income distribution and, most notably, his theory of interest would come to have a profound impact upon twentieth century economic theory, not least in the work of John Maynard Keynes. First published in English in 1934 and 1935, this _Routledge Revival_ set is a reissue of (...) his two volume work on political economy, first published in Sweden in 1901 and 1906. This work is aimed at both the professional economist and the advanced student alike, as well as all those interested in the theoretical development of political economy. Volume I concerns itself predominiantly with issues of theory: specifically the theory of value, the theory of production and distribution and the theory of capital accumulation. Volume II deals with theories relating to money, currency and credit. _For institutional purchases for e-book sets please contact [email protected]. (shrink)

International political economy identifies declining nominal interest rates, securitization, and financial liberalization as drivers of rising housing prices. Despite witnessing these common credit shocks, however, developed economies experienced divergent trends in housing inflation since the 1980s. We offer a comparative political economy explanation of variation in house prices, arguing that by restraining household incomes, wage-setting institutions can blunt financial liberalization’s inflationary impact on housing markets. Employing quantitative analysis and a comparative study of Ireland and the Netherlands, we (...) uncover two findings. First, countries where political coalitions in the export sector held veto powers over those in the nontraded sector in national wage setting realized lower housing inflation. Second, the impact of sectoral coalitions on housing prices in OECD countries is similar to that of financial variables. Our results suggest that the organization of labor politics continues to play an important role in mitigating the destabilizing effects of global finance on developed economies. (shrink)

The ArgumentI propose a revisionist account of the production and reception of Galileo's telescopic observations of 1609–10, an account that focuses on the relationship between credit and disclosure. Galileo, I argue, acted as though the corroboration of his observations were easy, not difficult. His primary worry was not that some people might reject his claims, but rather that those able to replicate them could too easily proceed to make further discoveries on their own and deprive him of credit. (...) Consequently, he tried to slow down potential replicators to prevent them from becoming competitors. He did so by not providing other practitioners access to high-power telescopes and by withholding information about how to build them. This essay looks at the development of Galileo's monopoly on early telescopic astronomy to understand how the relationship between disclosure and credit changed as he moved from being an instrument-maker to becoming a discoverer and, eventually, a court philosopher. (shrink)

This paper reassesses Sismondi's Nouveaux principes d?économie politique (1819) by locating the origins of his unorthodox political economy in the republican tradition of thought. Deeply influenced by both Smith and Rousseau, Sismondi first expounded his republican creed in a political treatise, Recherches sur les constitutions des peuples libres (1797?1801). He was in favour of a balanced constitution combined with public virtue. Sismondi's major historical work, the Histoire des républiques italiennes du Moyen Age (1807?1818), amounts to a tribute to the (...) liberty and patriotism brought about by republican governments. After a brief examination of De la richesse commerciale (1803), the third section of the paper is devoted to a close analysis of the Nouveaux principes. The foci of interest are Sismondi's views on property, commercial wealth, work and leisure, division of labour, consumption and luxury, paper money and public credit, and citizenship. The paper concludes by suggesting that Sismondi managed to transform Genevan republicanism into a set of ideas which has nourished economic radicalism up to the present. (shrink)

Contemporary capitalism is caught in a dual crisis of economy and ecology. Central to both dimensions of this crisis is the issue of growth. On the one hand, capitalist economies must exhibit perpetual growth in order to function properly. On the other hand, the expansion of capitalist production and consumption ultimately interferes with the processes of natural growth that we find within the domain of ecology. Parallax of Growth explores the ideas of economy and ecology and the factors (...) that have put them on a collision course. Among other things, the book aims to explain why our current mode of economic organization seems to be inherently committed to perpetual growth. A key answer, argues Bjerg, is that contemporary capitalism is characterized by an inherent ′debt drive′, whereby the creation of money through the issuance of commercial bank credit has locked our economy in a vicious circle of forced growth and increasing debt. Parallax of Growth is not a catalogue of solutions to the ecological or the economic crisis. The book aims to shift the inquiry from ‘what shall we do?’ to ‘why have we not already done it?’ In order to address the challenges of our contemporary times of crisis, it is not enough to point out all the different reasons why perpetual economic growth is impossible and unsustainable. We need to understand how the idea of growth is deeply ingrained in the ideology as well as the organization of our society. The book aims to open the space for philosophical thinking about this important issue. (shrink)

This paper develops a political economic explanation of the 2007–9 US subprime crisis which focuses on one of its central causes: the transformation of racial exclusion in US mortgage-markets. Until the early 1990s, racial minorities were systematically excluded from mortgage-finance due to bank-redlining and discrimination. But, then, racial exclusion in credit-markets was transformed: racial minorities were increasingly given access to housing-credit under terms far more adverse than were offered to non-minority borrowers. This paper shows that the emergence of (...) the subprime loan is linked, in turn, to the strategic transformation of banking in the 1980s, and to the unique global circumstances of the US macro-economy. Thus, subprime lending emerged from a combination of the long US history of racial exclusion in credit-markets, the crisis of US banking, and the position of the US within the global economy. From the viewpoint of the capitalist accumulation-process, these loans increased the depth of the financial expropriation of the working class by financial capital. The crisis in subprime lending then emerged when subprime loans with exploitative terms became more widespread and were made increasingly on an under-collateralised basis – that is, when housing-loans became not just extortionary but speculative. (shrink)

Quinoa farmers in San Agustín, Bolivia face the dilemma of producing for a growing international market while defending their community interests and resources, meeting their basic household needs, and making a profit. Farmers responded to a changing market in the 1970s by creating committees in defense of quinoa and farmer cooperatives to represent their interests and maximize economic returns. Today farmer cooperatives offer high, stable prices, politically represent farmers, and are major quinoa exporters, but intermediaries continue to play an important (...) role in the local economy. Meanwhile, some farmers rebuff the national cooperatives and intermediaries in favor of a denomination of origin and closer association with local cooperatives. This article, based on 4 months of ethnographic research, explores the reasons for the continued presence of intermediaries on the market landscape and how farmers have worked to create a quinoa economy embedded with fair trade values. Farmers demand stable prices, flexible standards, provision of services, and promises of maintaining the distinctive qualities of San Agustín quinoa. They frame their trades in economic, utility, and solidarity terms to reflect their livelihood strategies, farming capabilities, and personal concepts of fair trade. Meanwhile cooperatives, development initiatives, and intermediaries each argue that their particular buying practices allow farmers to attain household goods, credit, and cash for food and economic security. (shrink)

In this Article I argue that the global credit crunch of 2007-2009 is the result of the multifaceted phenomenon of liquidity illusion. Fundamentally, the problem of liquidity illusion derives from the hollow conceptualization of "liquidity" in mainstream financial theory and practice. Represented most recently by the market completion theory, this paradigm has led to a widespread misunderstanding of the dynamics of the relationship between the process of financial innovation and the liquidity of the financial system. In order to unpack (...) the political economy of liquidity illusion from other factors in the leadup to the global credit crunch, this Article builds upon Hyman Minsky’s vision of financial innovation and crisis. Challenging mainstream views of the liquidity-enhancing process of financial innovation, I identify the three pillars of liquidity illusion in the recent 2002-2007 bout of securitization: a) the paradigm of self-regulating finance; b) the role of Ponzi finance; and c) the function of private authority, namely credit rating agencies. (shrink)

The fight for emancipation takes place on different levels, and one of them is the level of contemporary financial capitalism as debt-economy. Debt can be a major tool of control and exploitation in that it produces subordinate subjects situated in exchange relations of debt and credit. Recent work on financial debt and the debt-economy has, however, not taken gender adequately into account in philosophical definitions of indebted subjects. Gender analysis discloses how the debtor–creditor relationship is based on (...) a contractarian idea of the indebted subject as an autonomous moral agent, and on a masculine, that is, a-relational understanding of what counts as debt and what does not in the contemporary debt-economy. In contrast to atomistic notions of the subject in liberal, contractarian theories, relational notions of the subject as advanced in care ethics are a better point of departure for capturing the interdependence of subjects within a debt-economy as a core feature of a nonsustainable monetary system. On the basis of such analysis, care ethics also offers means for imagining ways of emancipation from private and public problem credit in order to make financial systems more sustainable and more just. (shrink)

L’article fait Je point sur les thèses néo-institutionnalistes et sur la théorie des jeux telles qu’elles ont été «appliquées» à l’histoire. L’analyse des marchés principaux (travail, terre, crédit) et leur impact sur la théorie du développement sont également présentés. L’auteur prend ensuite en considération la théorie des jeux, il en discute les hypothèses et les présupposés de manière à rendre explicites les usages qui en ont été faits en histoire. La dernière partie introduit des notions plus complexes de rationalité économique, (...) distingue entre information et connaissance et propose un schéma heuristique permettant d’intégrer certains éléments de l’économie de l’information et des jeux dans des démarches qui tiennent compte des notions temporelles propres à l’historiographie. (shrink)

Various human groups, from food foragers to inner-city urban Americans, have used widespread sharing of resources through kin networks as a means of buffering themselves against fluctuations in resource availability in their environments. This paper addresses the effects of progressive incorporation into a wage-labor economy on the benefits of traditional kin networks for two social classes in urban South India. Predictions regarding the effects of kin network wealth, education, and size on child and spouse characteristics and methods of financing (...) marriages are tested using various regression techniques. Despite the rapid growth of participation in a wage-labor economy, it is found that kin network characteristics still have an important impact on investment behavior among families in Bangalore in both social classes. Network wealth is found to have a positive effect on child and spouse characteristics, and large networks are found to act as significant drains on family resources. However, the results for education are broadly consistent with an interpretation of increasing family autonomy as parents’ education has a far stronger influence on child and spouse characteristics across categories than network education does. Finally, professional-class parents are found to prefer financing marriages using formal mechanisms such as savings and bank loans while working-class parents preferentially finance marriages using credit from relatives and friends. (shrink)

Proponents of rising agricultural prices argue that enhanced farm profitability from higher commodity prices could generate positive spillovers for farm labourers by creating greater demand for their labour at higher wages overtime. We studied 75 households of fulltime and seasonal farm labourers engaged in rice-wheat production in Mandi Bahauddin district, Punjab, Pakistan, using cross-sectional survey data and interviews to examine how farm labourers’ food security and livelihoods have evolved amid rising market prices of rice-wheat crops and generalized inflation. For a (...) holistic analysis, we combined political economy framework and structural class analysis to unveil the contradictory role of non-market transfers of informal credit, and gifts extended by capitalist farmers in at once enhancing the farm labourers’ short-term food security while undermining their long-run food security. The latter occurs through informal credit mobilization, where growing indebtedness among farm labourers leads to wage squeezes. Structural capitalist farmer-labourer class exploitation combines with weak farmgate price response to undermine prospects for a positive trickle-down effect of higher food prices in the form of higher wages for farm labourers. We interpret these findings in the context of ongoing debates on the welfare implications of rising food prices for the poor in Global South countries. We propose policies including redistributive land and housing reform, minimum wage regulation, consolidation of public and civil society safety nets, and the creation of alternative low-and-semi-skilled livelihood opportunities. (shrink)

While Hume had a favorable opinion of the new commercial society, Reid envisioned a utopian system that would eliminate private property and substitute the profit incentive with a system of state-conferred honors. Reid’s predilection for a centralized command economy cannot be explained by his alleged discovery of market failures, and has to be considered in the context of his moral psychology. Hume tried to explain how the desire for gain that motivates the merchant leads to industry and frugality. These, (...) in their turn, benefit all society. Reid still saw the desire for money as a degenerate form of the desire for power. The contrast between Hume and Reid, however, has not to be taken too far. On some particular matters of economic policy, such as paper credit, Hume and Reid eventually came to similar views. (shrink)

This volume answers the question: Why do we believe what we believe? It examines current research on the concept of beliefs, and the development in our understanding of the process of believing. It takes into account empirical findings in the field of neuroscience regarding the processes that underlie beliefs, and discusses the notion that beyond the interactive exploratory analysis of sensory information from the complex outside world, humans engage in an evaluative analysis by which they attribute personal meaning and relevance (...) to the probabilistic representations of objects and events. Beliefs exert a strong influence on behaviour, decision-making, and identifying and solving problems. Despite their importance, beliefs have until recently not been at the centre of scientific interest. In fact, "belief" is an ill-defined phenomenon. From a transdisciplinary perspective the actual approaches to understanding belief seem incompatible as they attempt to highlight such different topics as "belief - religion", "belief - spirituality", "belief - faith", "belief - knowledge", "belief - attitude", "belief - disbelief", "belief - illusion", and "believing - brain function". This situation contradicts the idea that belief is close to pathological phenomena and that it should be eliminated from scientific discussions. Rather, believing is fundamental for understanding the many problems of every-day life. In fact, the book shows that beliefs are relevant for politics, international affairs, economy, law, or religions also in modern societies. This book presents the increasing scientific interest in beliefs and believing, and reflects the change in focus from the content aspect of belief towards the fluid nature of believing. (shrink)

This article introduces the concept of epistemic positioning to theorize the relationship between identity-based epistemic judgements and the reproduction of social inequalities, including those of gender and ethnicity/race, in the academia. Acts of epistemic positioning entail the evaluation of knowledge claims based on the speaker’s stated or inferred identity. These judgements serve to limit the scope of the knowledge claim, making it more likely speakers will be denied recognition or credit. The four types of epistemic positioning – bounding (reducing (...) a knowledge claim to elements of personal identity), domaining (reducing a knowledge claim to discipline or field associated with identity), non-attribution (using the claim without recognizing the author) and appropriation (presenting the claim as one’s own) – are mutually reinforcing. Given the growing importance of visibility and recognition in the context of increasing competition and insecurity in academic employment, these practices play a role in the ability of underrepresented groups to remain in the academic profession. (shrink)

I aim to explode a famous thesis about “the rise of fictionality,” argued in an essay of that title by Catherine Gallagher. I also have in mind related claims that the eighteenth or the nineteenth century first distinguished fiction from nonfiction or first differentiated literature from other modes of discourse. Gallagher places the rise of fictionality exactly where Ian Watt placed the rise of the novel—England, 1720 to 1740—and she connects it to the development of a credit economy. (...) This article argues that the relationship between fiction and credit goes deeper than this, insofar as fiction was classically theorized in relation to modal concepts like probability and as such had a direct relationship to what Aristotle called endoxa: what is believed by all or by most. Probability was understood in relation not to what happens but to what is thought to happen: that is, to a socially constituted sense of what and who is credible. The article takes account of the multiple disciplines in which fictionality was theorized in the premodern period, but it emphasizes the centrality of rhetoric and the dissemination of a model of fictionality through the early modern grammar schools. Finally, it reads Shakespeare’s Othello to show that probable fiction was not only an available concept but a crucial tool for the analysis of social life. In Othello, ideologies of race and gender define the unequal terms on which credibility is established. Probable fiction is directly tied to the work of making and unmaking social worlds. (shrink)

This paper investigates how the credit incentive to engage in questionable research practices interacts with cumulative advantage, the process whereby high-status academics more easily increase their status than low-status academics. I use a mathematical model to highlight two dynamics that have not yet received much attention. First, due to cumulative advantage, questionable research practices may pay off over the course of an academic career even if they are not attractive at the level of individual publications. Second, because of the (...) role of bottleneck moments in academic careers, questionable research practices may be selected for even if they do not provide a benefit in expectation. I also observe that, within the model, the most successful academics are the most likely to have benefited from fraud. (shrink)

In the absence of access to formal credit, informal contracts with independent investors give the small ranchers of the Lower Amazon an acceptable means through which to surmount the high investment hurdle of starting a cattle herd. These contracts – called sociedades – allow small ranchers to raise an outside investor's cattle in return for a portion of the offspring and are commonplace in the cattle production systems of the Amazon. But, notwithstanding a vast literature on cattle production in (...) the Amazon, informal contracts have been largely overlooked. This paper presents the results of a field survey and financial analysis for informal contracts on small ranches in the Lower Amazon. In the results, we suggest that informal contracts are an important means of cattle herd start-up and herd production for small ranchers. Internal rates of returns in cattle production under these contracts are in the range of –7 to –12% for the small rancher and 12% for the investor. The net present value of the contract to the small rancher ranges from –R$1219 to –R$8599 and from R$1681 to R$8845 for the investor, for a 10-year period, depending on herd size. Financial returns contracts are sensitive to the contract design – e.g., to who pays health costs – and to beef prices. The small ranchers have a negative IRR, lose money, and bear all the risk of loss, yet persist in using this form of herd development. We surmise that this is due to the non-financial benefits of cattle ownership and the lack of access to formal credit structures. In conclusion, although outside the formal economy and apparently financially unrewarding, these contracts are an important mechanism by which the small ranchers on the Amazon Floodplains create cattle herds. (shrink)

Prepublication peer review should be abolished. We consider the effects that such a change will have on the social structure of science, paying particular attention to the changed incentive structure and the likely effects on the behaviour of individual scientists. We evaluate these changes from the perspective of epistemic consequentialism. We find that where the effects of abolishing prepublication peer review can be evaluated with a reasonable level of confidence based on presently available evidence, they are either positive or neutral. (...) We conclude that on present evidence abolishing peer review weakly dominates the status quo. (shrink)