Following recent debates on the New Neoclassical Synthesis, the theory of monetary policy has been renewed. The prevailing method, illustrated by Woodford's version of Interest and Prices, is a Dynamic Stochastic General Equilibrium Model in which the old LM curve is voluntarily substituted by an optimal monetary rule. Such a turning point requires a peculiar set of assumptions, especially regarding monetary prices. The recent debate pays attention to de-emphasis on the nominal monetary aggregate, which does not play any (...) explicit role in monetary policy deliberations. Following Calvo's model, Woodford's neo-Wicksellian framework only considered monetary prices in equilibrium. This article demonstrates that even though the New Neoclassical Synthesis considers it essential to have a monetary theory for policymaking, the former offers the same answers as the traditional static macroeconomics. More precisely, it shows that the use of dynamic optimisation – such as the one developed by Woodford's approach – does not contribute in a decisive way to improving our understanding of the role that money prices play in monetary theory. Woodford's canvas is silent about the mechanisms whereby monetary policy induces agents to adjust individual money prices to the values that generate an equilibrium price level. Thus, if we want to close this gap, it may be useful to consider a 'forward guidance' strategy. By means of such a tool, central bankers are able to shape the public's expectations on economic outcomes by pre-announcing the time path of future policy actions. (shrink)

Contributes a black Atlantic perspective to postmodernism, theology, and metaphysics.

As the title indicates, this most recent of Hartshorne's works blends doctrinal exposition with analyses of methodological issues. Each of the sixteen chapters can be read as an independent essay, although the entire work is intended as "an essay in systematic metaphysics." The paradox is resolved once we realize that Hartshorne does not separate substantive discussion and the examination of methodological principles--the text exemplifies the principles latent in "creative synthesis" as he understands it. Each chapter takes shape out of (...) a position-matrix in terms of which a number of possible positions on problems of relations, modality, and temporality are exhibited and finally sifted in order to determine the most viable for future philosophic inquiry. Portions of six of the chapters had previously been published, one as early as 1958; the remaining ten appear for the first time in this volume. Although much of the doctrinal content will be familiar to those who have read Hartshorne's earlier works, the clarity and coherence of these essays make it an especially valuable work for students of metaphysics, whether they accept the neoclassical position or not. In the first chapter, "A Philosophy of Shared Creative Experience," Hartshorne presents his case for the inclusive priority of "becoming" over "being"; in the next three chapters, he turns to a more detailed analysis of technical problems in metaphysics--the specification of the domain of metaphysical inquiry, the viability of the notion of inclusive contrast as the heart of "relativity", and the ultimate coincidence of modal and temporal categories as the summit of the analyses of "abstractions". Each of these chapters is an excellent example of Hartshorne's working through "position-matrices"; but for those who are unfamiliar with Hartshorne's work, or for those who desire a less 'naïve' approach to metaphysical inquiry it might be advisable to turn to Chapters V and VI immediately after Chapter I. In these two essays, Hartshorne presents a general exposition of the structure of his system, exposing and defending the conception of relativity which lies at the heart of his system: the triadicity [[sic]] of creative synthesis must be construed relatively, the contrast of relative and absolute being included within the relative member of the contrast. In the succeeding chapters, the difficulties which such a conception must face are explored in detail. Among the difficulties which Hartshorne focuses upon are the possibility of "non-restrictive or necessary existential truths", the psychological reeducation which a conception of the priority of events necessitates, the explanatory power of directed or asymmetrical relations as opposed to non-directed, symmetrical ones, and the critique of the notion of ens realissimum and its substitution by the universal forms of dependence and independence. It is interesting that at various places in this work Hartshorne indicates that the importance of the problem of the relations among contemporaries must be relegated to secondary status in the philosophy of shared creative experience. It becomes increasingly evident that were the author to stress its importance, he should have to turn to a conception of eternal objects functioning relationally or affirm interaction between God and any other individual in strictly simultaneous states. Either move would necessitate a major shift in his methodological principles and substantive doctrines. That he has struggled with the problem of the relations among contemporaries for so long shows his willingness to confront the possibility of such a shift. This is one of the major criteria for evaluating metaphysicians, as Hartshorne notes; in the light of this criterion, Hartshorne's newest work will be judged a significant contribution to metaphysical inquiry.--R. L. C. (shrink)

Deindustrialization is a major burden on workers’ health in many countries, calling for theoretically informed sociological analysis. Here, we present a novel neoclassical sociological synthesis of the lived experience of deindustrialization. We conceptualize industry as a social institution whose disintegration has widespread implications for the social fabric. Combining Durkheimian and Marxian categories, we show that deindustrialization generates ruptures in economic production, which entail job and income loss, increased exploitation, social inequality, and the disruption of services. These ruptures spill (...) over to the field of social reproduction, generating material deprivation, job strain, fatalism, increased domestic workload, anomie, community disintegration, and alienation. These ruptures in social reproduction are sources of psychosocial stress, through which deindustrialization gets embodied as ill health and dysfunctional health behavior. We substantiate this framework through the extensive qualitative thematic analysis of 82 life history interviews in Hungary’s rust belt. (shrink)

In this work Peters presents an interpretive summary of the metaphysical position which he considers the foremost attempt to radically reinterpret the classical philosophical notions of substance, causality and deity—the theory of fact-as-such or of concreteness, which has been critically and constructively developed in the work of Charles Hartshorne. This study is valuable as a guide to Hartshorne’s philosophical speculations and is essentially up-to-date. Peters has included in his analyses a formerly unpublished manuscript of Hartshorne’s which has since been incorporated (...) into Creative Synthesis and Philosophic Method. He begins with a short biographical essay on Hartshorne; he moves immediately into a discussion of methodology, specifically Hartshorne’s position on unrestrictive existential statements. From this methodological base, Peters turns to a consideration of the panpsychist interpretation of events, the doctrine of the ultimate coincidence of temporal and modal categories in the chapter on creativity, the dipolar conception of deity, the notion of inclusive contrast and its significance for the distinction of subject and object, and to the aesthetic foundation of speculative thought as evidenced in Hartshorne’s continual attempt to resolve the problem of unity within diversity. The last chapter in the book, entitled "A Critical Look at Crucial Axioms" contains an overview of axioms which Peters considers essential to an understanding of Hartshorne’s philosophy and critical consideration of Hartshorne’s principle of positivity, the principle which served as the focus of discussion in the earlier chapter on methodology. (shrink)

This is the first full-length survey of current work which examines the compatibility of microeconomics and macroeconomics. Its particular distinction is that it makes accessible, to non-specialists, those extensive modern refinements of general equilibrium theory which are linked to macroeconomics and monetary theory. Part I traces the development and interlocking nature of two scientific research prgrams, macroeconomics and neo-Walrasian analysis. The five chapters in this part examine general equilibrium theory, Keynes' contribution, the 'neoclassical synthesis', and the Clower–Leijonhufvud contributions (...) to questions of systemic coordination. The four chapters of Part II place recent work on the micro-foundations of macroeconomics within a taxonomic scheme of Walrasian equilibrium, Walrasian disequilibrium, Edgeworthian equilibrium, and Edgeworthian disequilibrium. Part III, a single chapter, provides an overview of the subject and ventures some conclusions. (shrink)

When President Reagan and Prime Minister Thatcher adopted the neoliberal doctrine as the paradigm of economics, there was no evidence that the move would have been successful, but thirty years on, the recurrent crises that culminated in 2008 suggest a serious mis-match between expectations and outcomes: a re-examination of the paradigm is in order. This book focuses on Milton Friedman's formulation of the neoliberal doctrine, and analyses two aspects that were essential to turning it into a fully-fledged paradigm: the attribution (...) of scientific status to positive economics, which led to informing public policies on the requirements of the market; and the characterisation of economic freedom as capable of promoting political freedom, which led to identifying free market with democracy. The book exposes Friedman's methodological argument for attributing positive economics scientific status as a failure, and his characterisation of economic freedom as a delusion; it identifies in the emergence as the mainstream in economics of the neoclassical synthesis, which borrowed from Walras' the mathematical treatment of equilibrium but not the ethical and social framework in which it was inscribed, a development that facilitated the transition from the Keynesian to the neoliberal paradigm. Dr. Mosini shows that the gigantic bail-outs carried out courtesy of the public purse, which institutionalised the practice of collectivising losses while keeping profits private, were no accident, but the consequence of the rethinking of the function of lender of last resort according to Friedman's conception of rationality in relation to risk, combined with his interpretation of the 1930s recession. The book concludes that the neoliberal paradigm has served the interests of the economically powerful social strata it was designed to benefit extremely well, but that the deep, and deepening, injustice it has brought about calls for a complete rethinking of the paradigm of economics according to ethical principles respectful of human values. This book should be of interest to students and researchers of Political Economy, Economic Methodology, History of Economic Thought and Philosophy. (shrink)

Robert Lucas' article on the neutrality of money represented the first effective challenge to Samuelson’s neoclassical synthesis methodological separation between static microeconom...

Summary This article examines the life and thought of Thomas Balogh and Nicholas Kaldor, two Hungarian-born British economists, to suggest how the personal background and émigré status of these economists changed their view of the British economy and the economic policy recommendations they put forward as high-profile government advisers in the post-1945 period. This article combines research on inter-war intellectual migration and the history of British economics and economic policy making after the Second World War. It shows how the large (...) scale migration of Central European intellectuals to the English-speaking countries affected the academic, intellectual and cultural lives of the host countries; it also suggests how economics, a relatively young social science discipline, has been crucially enriched by the contributions of exiles from old Europe, and how the mainstream paradigm of modern economics, the so-called neoclassical synthesis, was the result of the cross-fertilisation of ideas facilitated by the physical movement of academics and thinkers. (shrink)

This volume illuminates and critically assesses Paul A. Samuelson's voluminous and groundbreaking contributions to the field of economics. The volume includes contributions from eminent scholars, including 6 Nobel Laureates, covering the extraordinary depth and breadth of Samuelson's contributions. Samuelson, the first American economist to win the Nobel prize in 1970, was the foremost voice in economics in the latter half of the 20th century. He single-handedly transformed the discipline by creating a new way of presenting economics, making it possible for (...) it to be cast all in mathematical terms. Samuelson developed broad frameworks, such as the neoclassical synthesis, a mixed economy, and the surrogate production function, which provided practitioners with a vision for research. Samuelson's contributions to economics are rich, complex, consequential, and relevant to the ordinary economics of life. The quality of Samuelson's output and methods leave no doubt that his contributions continue to be timely and relevant even in the 21st century. Ideal as a reference or an introduction to Samuelson's work, this is a must-have for students and academics alike. (shrink)

The paper contends that neoclassical ideology stems, to a great extent, from mathematical analysis. It is suggested that mainstream economic thought can be comprehensively revisited if both histories of mathematical and economic thought are to be taken collaboratively into account. Ideology is understood as a 'social construction of reality' that prevents us from evaluating our own standpoint, and impedes us from realising our value judgments as well as our theories of society and nature. However, the mid-19th century's intellectual controversies (...) about the validity of mathematical thought, truth and knowledge can procure new interesting insights concerning the ideological stance of the first marginalists. In this respect, the methodological categories of analysis and synthesis serve as the basis for the crucial distinction between old geometry and mathematical analysis, indicating that the discipline of mathematics has its own history of fundamentally unresolved disputes. Lastly, this may also shed some light on Alfred Marshall's peculiarly reluctant attitude towards the use of mathematical analysis in his work. (shrink)

The classical view of the gene prevailing during the 1910s and 1930s comprehended the gene as the indivisible unit of genetic transmission, genetic recombination, gene mutation and gene function. The discovery of intragenic recombination in the early 1940s led to the neoclassical concept of the gene, which prevailed until the 1970s. In this view the gene or cistron, as it was now called, was divided into its constituent parts, the mutons and recons, materially identified as nucleotides. Each cistron was (...) believed to be responsible for the synthesis of one single mRNA and concurrently for one single polypeptide. The discoveries of DNA technology, beginning in the early 1970s, have led to the second revolution in the concept of the gene in which none of the classical or neoclassical criteria for the definition of the gene hold strictly true. These are the discoveries concerning gene repetition and overlapping, movable genes, complex promoters, multiple polyadenylation sites, polyprotein genes, editing of the primary transcript, pseudogenes and gene nesting. Thus, despite the fact that our comprehension of the structure and organization of the genetic material has greatly increased, we are left with a rather , open and general concept of the gene. This article discusses past and present contemplations of genes, genomes, genotypes and phenotypes as well as the most recent advances of the study of the organization of genomes. (shrink)

The Austrian School's conventional theory of the firm is based on an attempt to synthesize Coase's concept of the firm as a centrally planned hierarchy with the Austrian theory of entrepreneurship and monetary calculation. This paper is a critique of that program as well as an attempt to outline the alternative theory of the firm, one based on the synthesis of the contractual agency theory of the firm with the same Austrian arguments about entrepreneurship and calculation. The firm in (...) this paper is defined as a nexus of various markets for goods as well as for labor and managerial services rather than as a hierarchy or “organization.” Both the neoclassical and Austrian critiques of the latter concept are utilized to prove that a clear distinction between the market and the firm cannot be established. That distinction is based on the misunderstanding of the firm's dynamics as exclusively tied to the managing/transaction costs ratio as well as on the mischaracterization of inter-firm relations as commanding ones. On the other hand, the central planning view of the firm is equally at odds with the key Mises's argument that rational economic planning is impossible in the absence of market prices. If this is so, the firm, as understood in a Coasian paradigm, would not have any reason to exist, or any reason to contribute positively to economic efficiency, because it would simply represent a centrally planned “island of incalculability” in a wider market setting. Since the firm is a nexus of various markets, its operation is contrary to the Coaseian assumptions led by the price signals. Only insofar as the internal firm's operation is driven by the price signals can the firm be efficient. (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)

Scientific papers written as dialogues evoke Platonist philosophical discourses and are foreseen as elementary forms of expression in neoclassical scientific renaissance. Here we report on a study of the Brazil nut effect in a series of macroscopic and microscopic systems in the form of a play in three acts. The nut effect predicting the segregation of smaller grains at the bottom of the mixture and larger ones at the top was observed in a polydisperse mix of manually shaken playground (...) pebbles, albeit following different kinetics than in an agitated pile of chess pieces. Common sense predicts that vertical, gravity-driven segregation in colloidal dispersions with heterogeneous particle size distributions is such that larger particles would settle toward the bottom and the lighter ones cream at the top. Here we refute this expectation and demonstrate that segregation of colloidal particles in the vertical direction conforms to the Brazil nut effect when the agitation is delivered in the forms of vortex mixing or audio vibration, but not when the colloids are manually shaken. The effect is demonstrated on aqueous dispersions of hydroxyapatite and iron oxide nanoparticles. Kinetic experiments showed that segregation increases with the agitation time in mixtures of pebbles and with the post-agitation aging time in fine particle colloids. The particle size gradient established due to agitation-induced segregation led to a corresponding gradient in optoelectronic properties—band gap, conductivity, lattice acoustics—in the vertical direction of the colloidal column for both types of nanoparticles. Such morphological gradients induced by the Brazil nut effect can be harnessed as affordable and facile templates for the synthesis of functionally gradient materials. Discussion of the mechanism and the application potential of the observed effect in colloidal and coarse systems is enriched with a literature review of this curious effect and entwined with the literary elements of the dramaturgical narrative involving a family of scientist in exile from mainstream scientific institutions: the mother, the father, an elementary school boy and a kindergarten girl. The narrative conforms in its structure to the shape of a Brazil nut and presents the first research study whose findings are enacted through a dream. The play questions the humaneness and creative prospects of modern science and celebrates children’s science projects performed with meager resources and a plentiful of imagination, showing that they could be gateways to important scientific discoveries. (shrink)

Philipp Otto Runge (1777-1810) was a leading German Romantic artist whose iconography represents a transition from the Neoclassical iconography of classical mythology and allegory to an abstract semiotic system of signs based on a mystical interpretation of nature. An admirer of Herder's theory of language, Runge's iconography was representative of a trend among Romantic artists to promote nationalism and cultural values through the implementation of formal epistemological systems in the medium of art. Runge's individual iconography reveals a synthesis (...) of rational and mystical systems of knowledge that emphasizes Herder's concept of the German Volk as a unique cultural identity, and presents an analogy between the creation of the cosmos, the organic origins of language, and the conception of the German Volk. Runge's iconography expresses the nationalist sentiments and linguistic theory of Herder that formed the basis of German propaganda movements during the Wars of Liberation, 1807-1815. (shrink)

Foundations of Economic Personalism is a series of three book-length monographs, each closely examining a significant dimension of the Center for Economic Personalism's unique synthesis of Christian personalism and free-economic market theory. In the aftermath of the momentous geo-political and economic changes of the late 1980s, a small group of Christian social ethicists began to converse with free-market economists over the morality of market activity. This interdisciplinary exchange eventually led to the founding of a new academic subdiscipline under the (...) rubric of economic personalism. These scholars attempt to integrate economic theory, history, and methodology with Christian personalism's stress upon human dignity, humane social structures, and social justice. This second volume in the series surveys the anthropological foundations to the disciplines of economics and moral theology. The first part of the book presents an overview of the German, French, and Polish branches of personalist thought. Particular attention is given to theological anthropology, especially as it is developed by such thinkers as Emmanuel Mounier, Max Scheler, Gabriel Marcel, Karol Wojtyla, and Emil Brunner. Part two surveys models of human nature that have been espoused by various schools of free-market thought—including mainstream neoclassical economics. In conclusion, the authors demonstrate how an expanded understanding of human nature can augment the ability of economic science to model and predict human behavior. (shrink)

This dissertation addresses a debate about the proper relationship between democratic theory and institutions. The debate has been waged between two rival approaches: on the one side is an aggregative and economic theory of democracy, known as constitutional economics, and on the other side is deliberative democracy. The two sides endorse starkly different positions on the issue of what makes a democracy legitimate and stable within an institutional setting. Constitutional economists model political agents in the same way that neoclassical (...) economists model economic agents, that is, as self-regarding, rational maximizers; so that evaluations of democratic legitimacy and stability depend on the extent to which the design of institutional rules and practices maximize individual utility by promoting efficient schemes of collective choice. Deliberative democrats, on the other hand, understand political agents as communicative reason-giving subjects who justify their preferences and positions on issues that jointly affect them in a process of consensus-directed discourse, or deliberation; so that evaluations of democratic legitimacy and order depend on the degree to which institutional norms and practices promote deliberation and draw upon deliberated public judgment. I argue that despite the numerous incompatibilities between constitutional economics and deliberative democracy—which amount to a 'deep divide'—an opportunity to produce a genuine synthesis of the two approaches arises inasmuch as it is possible to overcome several points of opposition in their separate research programmes. The central thesis of the dissertation is that it is possible to construct a bridge spanning the divide between constitutional economists and deliberative democrats, and that Dewey and Bentley's transactional view can facilitate this bridge-building project. Pursuant to this end, the points of opposition between the v research programmes are mediated by way of five concepts which, on balance, favor deliberative democracy and its feasible institutionalization. (shrink)

Neoclassical economic theory in its pretensions to scientific status is founded on one of the variants of a now discredited positivism. Neoclassical economic theory claims that there are two distinct areas of economic research: positive economics and normative economics. The former is assumed to deal with the cognitive as scientific content of economics while the later focuses on welfare or equity issues. I argue that the reliance of the whole theoretical structure of economics on the normative postulate of (...) rationality renders neoclassical economics a normative discipline. I also argue that neoclassical economics should thus be viewed as an instance of applied ethics rather than as applied mathematics, say. Finally, it is suggested that neoclassical economics, if its scientific pretensions are to be taken seriously, should be absorbed theoretically into general anthropology. (shrink)

Although neoclassical economics faces frequent criticism, it remains the dominant paradigm, largely due to its immunisation strategies that rely on unfalsifiable concepts of utility and rationality. In this paper, I use Karl Popper’s philosophy to assess whether these strategies are justified. Firstly, I reconstruct Popper’s ideas on immunisation strategies, situational analysis, the rationality principle, and the metaphysical research programme. Next, I examine how neoclassical economics’ immunisation strategies counter critiques from behavioural economics. I conclude that neoclassical economics’ method (...) does not produce empirical conjectures. I assess and evaluate this finding in relation to the “rationality principle”, as it parallels neoclassical economics’ optimisation axiom. Furthermore, I explore Popper’s relevance in the context of neoclassical economics’ recent incorporation of behavioural economics’ insights to show that my analysis is not purely historical. (shrink)

This book assesses the German liberal theological tradition in the early years of the twentieth century, concentrating in particular on the work of Ernst Troeltsch. It locates theology in its social and political context, and seeks to understand the period on its own terms and not through the distorting lens of the First World War.

This work examines the claim to scienific status made by supporters and practitioners of neoclassical economics. The approach taken is that of the history and philosophy of science. Analysis points to the conclusion that theories of economic choice are necessarily normative, essentially because of the nature of human behavior.