12TH INTERNATIONAL

POST KEYNESIAN CONFERENCE SEPTEMBER 25—27, 2014

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TWELFTH INTERNATIONAL POST KEYNESIAN CONFERNCE

Where Do We Go From Here?

September 25—27, 2014

University of Missouri – Kansas City Kansas City, MO

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MUCH THANKS TO OUR CONFERENCE SPONSORS

University of Missouri—Kansas City

Department of Economics, University of Missouri – Kansas City

Levy Economics Institute of Bard College

Ford Foundation

Journal of Post Keynesian Economics

M.E. Sharpe, Inc.

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WEDNESDAY, SEPTEMBER 24

6:00 – 8:00 P.M: WELCOME EVENT, ROYALL 111

BRUCE GREENWALD: VALUE INVESTING AND THE MIS-MEASURES OF MODERN PORTFOLIO THEORY

THURSDAY, SEPTEMBER 25

8:00 AM – 8:45 AM: REGISTRATION, STUDENT UNION 9:00 AM - 10:15 AM: CONCURRENT SESSIONS Room, 302: CHINA’S NEW MODEL MODERATOR: ANU MUHAMMAD TANWEER AKRAM Bertrand Russell and the Challenges of Contemporary China ROBERTO ALEXANDRE ZANCHETTA BORGHI

How Does the Employer of Last Resort Reduce Unemployment and Provide Increased Economic Stability? A Stock-Flow Consistent Model

ISABEL RODRIGUEZ PENA (Universidad Autonoma Metropolitana)

The Chinese Growth Trajectory from a Post Keynesian-Structuralist Developmental Perspective YAN LIANG

Shadow Banking in China: Implications for Financial Stability and Economic Rebalancing Room, 302A: PERSPECTIVES ON POST KEYNESIAN ECONOMIC POLICY MODERATOR: WESLEY MARSHALL

LAURI HOLAPPA The Strange Emergence of Post Keynesian Economics in Finland

MAN-SEOP PARK Towards a ‘Classical Keynesian’ Analysis of Effective Demand in the Long Period JOHN NICOLARSEN

First Postulate Pilloried: Policy as Analytical Tool for Sketching a Heterodox Citadel MEHMET MERCAN & OZLEM ARZU AZER The Relationship Between Keynesian Militarism and Economic Growth

10:15 AM - 10:30 AM: BREAK

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10:30 AM - 11:45 AM CONCURRENT SESSIONS Room, 302: FINANCIAL CRISES AND REGULATION MODERATOR: MATTHEW BERG

CHRISTINE SINAPI & MARC PILKINGTON Crisis Perception in Financial Media Discourse JOHN KOMLOS Some Controversial Aspects of the Financial Meltdown of 2008 ANDY FELKERSON Aspects of the Federal Reserve’s Quantitative Easing Policies Room, 302A: MMT, FUNCTIONAL FINANCE, AND ELR MODERATOR: JOHN NICOLARSEN

HENDRIK VAN DEN BERG MMT, ELR, and the Environment

ERIC TYMOIGNE MMT and the Consolidation Hypothesis ANTTI ALAJA

Platamo Employment Experiment in Finland ASHTON PHILLIPS Bank Created Money, Monetary Sovereignty, and the Federal Deficit

11:45 AM - 1:00 PM: BREAK

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1:00 PM - 2:15 PM CONCURRENT SESSIONS Room, 302: ECONOMICS IN LATIN AMERICA MODERATOR: SURBHI BADHWAR

DOUGLAS ALCANTARA ALENCAR & EDUARDO STRACHMAN Foreign Direct Investment and Balances of Payments in Latin America (1990-2011)

FELIPE REZENDE

Keynes’s Core Contributions to Finance: What are the Lessons for Brazil

GONZALO COMBITA MORA & OSCAR EDUARDO PEREZ RODRIGUEZ Financial Fragility Applied to the Real Estate Sector: The Case of Bogota Between 2003-2012 LAURA EBERT & LEANNE USSHER Conceptualizing Commodity Dependence in the Case of Global Imbalance: The Case of Brazil

Room, 302A: FINANCIALIZATION AND THE BUSINESS ENTERPRISE MODERATOR: STEFANIE COLE

LI BAOWIE, ZHANG YUN, JIANLEI, & XIE RUOQING Financilization and Macro-Liquidity Risk: Post Keynesian Financial Fragility Theory CHRISTINE SINAPI

Neoliberalism, Financialization, and Globalization: An Intrinsically Unstable Institutional Arrangement?

DIRK EHNTS & MIGUEL CARRION ALVAREZ Samuelson and Davidson on Ergodicity SERGIO CANAVATTI

Economic Imperialism and the Diffusion of the “Nexus of Contracts” Definition of Business Enterprise

2:15 PM – 2:30 PM: BREAK

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2:30 PM – 3:45 PM CONCURRENT SESSIONS Room, 302: FINANCIALIZATION AND MONETARY THEORY MODERATOR: CHRISTINE SINAPI JOELLE LECLAIRE

Financial Instability and Household Debt

MARK EVERS & TRACY MOTT Financialization and Income Distribution in the US Economy FARUK ULGEN

Financialized Capitalism and Irrelevance of Self-Regulation: A Minskyan Analysis of Systemic Viability STEFANIE COLE Finance as a Social Service

Room, 302A: PRICES, EXCHANGE RATES, AND MONETARY REFORM MODERATOR: FLORENCIA MEDICI THIBAULT LAURENTJOYE & LAURENT BARATIN On the Possibility of Cost-Push Deflation AKIRA MATSUMOTO The 2008 Economic Crisis from the Perspective of Changes in Price Movements JAN PRIEWE

An Asset Price Theory of Exchange Rates LEANNE USSHER Combining International Monetary Reform with Commodity Price Stabilization: Keynes, Graham, and Kaldor

3:45 PM - 4:00 PM: BREAK

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4:00 PM - 5:15 PM CONCURRENT SESSIONS Room, 302: STABILIZING AN UNSTABLE ECONOMY: FUNCTIONAL FINANCE AND MONETARY POLICY MODERATOR: STEVE FAZZARI

ARJUN JAVADEV & JOSH MASON Functional Finance and Sound Finance in Light of Tinbergen’s Rule

PETER SKOTT & SOON RYOO Functional Finance in an Unstable Economy

L. RANDALL WRAY

Room, 302A: DEVELOPMENT AND ECOLOGICAL ECONOMICS MODERATOR: HENDRIK VAN DEN BERG

PIERRE KOHLER

Asset-Centered Redistributive Policies for Sustainable Development ANU MUHAMMAD Development Model in Post Keynesian World: Washington or Beijing Consensus? BRIAN WERNER

Local Food Systems: Theory and Evidence SURBHI BADHWAR Determinants of Economic Growth in Developing and Developed Countries

5:15 PM – 5:45 PM: BREAK 6:00 PM - 7:00 PM: SPECIAL SESSION Room, Theater 103: WHAT SHOULD WE HAVE LEARNED FROM THE GLOBAL CRISIS (BUT FAILED TO)? Participants: BRUCE GREENWALD LORD ROBERT SKIDELSKY STEVE KRASKE 7:30 PM: DINNER, PIERSON AUDITORIUM

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FRIDAY, SEPTEMBER 28 9:00 AM - 10:15 AM CONCURRENT SESSIONS Room, 302: UNCERTAINTY AND ECONOMIC GROWTH MODERATOR: DIRK EHNTS MARWIL DAVILA-FERNANDES

Conciliating Prebisch-Singer and Thirlwall: An Assessment of the Dynamics of Terms of Trade in Balance of Payments Constrained Growth

SOUMYA DATTA Macrodynamics of Debt-Financed Investment-Led Growth with Interest Rate Rules FLORENCIA MEDICI & DEMIAN PANIGO Fixed Factors, Terms of Trade, and Growth in Unbalanced Productive Structures STEFAN VOSS How Uncertain is the Post Keynesian School with Uncertainty? Room, 302A: MARKET GOVERNANCE AND CONTROLLING MARKETS MODERATOR: AVRAHAM BARANES

TSUYOSHI YASUHARA Increasing Returns or Decreasing Returns: Manufacturing Industries in the Global Value Chain

STEPHANIE SHELDON Spot Market and Basis Pricing in Oil Markets: Marginal Pricing or Institutions of Market Governance?

CHRISTINE NGO Local Value Chain Development in Global Supply Networks: Technical Learning and Rent Management ANDRES CANTILLO Portfolio Decisions of Investment and the Structure of Production

10:15 AM - 10:30 AM: BREAK

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10:30 AM - 11:45 AM CONCURRENT SESSIONS Room, 302: MODELS OF ECONOMIC POLICY MODERATOR: OLIVER PICEK ALAN DAY HAIGHT Kaldor, Piketty, and the Keynesian Cross Diagram SALIHA JLASSI What Policy Mix Against Poverty and Regional Inequality in Tunisia: A Post Keynesian Stock-

Flow Consistent Model OLIVIA BURROWS, ANTOINE GODIN, STEPHAN KINSELLA, STEPHEN MILLARD, &

SEAN RYAN A Dynamic Model of Financial Balances for the United Kingdom XIAO JIANG Liquidity Profit Rate Cycles and Chaos Room, 302A: GRADUATE STUDENT PANEL IN HONOR OF FRED LEE MODERATOR: DREW WESTBERG CHRISTIAN SPANBERGER Scarcity, Environmental Resources, and the Heterodox Production Model DREW WESTBERG Towards a Heterodox Theory of the Spatial Economy MITCH GREEN Of Railroads and Finance: The Making of Market Society in the Pacific Northwest NICOLA MATTHEWS Modeling the Classical Surplus Approach: Contributions to the Heterodox Tradition 11:45 AM - 1:00 PM: BREAK

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1:00 PM - 2:15 PM CONCURRENT SESSIONS Room, 302: ROUNDTABLE ON POST KEYNESIAN APPROACHES TO MENA ECONOMICS MODERATOR: MATTHEW FORSTATER PARTICIPANTS: 1) MATTHEW FORSTATER 2) MIKE KELSAY 3) MEHDI BEN GURIAT 4) SHAMA AZAD 5) FADHEL KABOUB Room, 302A: CYCLES AND CRASHES MODERATOR: ALEX BINDER SANDER VAN DER HOOG Bubbles, Crashes, and the Financial Cycle DEEPANSHU MOHAN Macroeconomics of ‘Oil Shocks’ and ‘Recessions’ ROBERT W. DIMAND Keynes on Financial Crises: The Consequences to the Banks of the Collapse of Money Values 2:15 PM – 2:30 PM: BREAK

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2:30 PM – 3:45 PM CONCURRENT SESSIONS Room, 302: RESPONSES & REFORMS TO THE GLOBAL FINANCIAL CRISIS MODERATOR: ANDY FELKERSON MANJIRA DASGUPTA The Financial Crisis and Policy Response: A Post Keynesian Perspective VINEET KOHLI Some Macroeconomics of Directed Credit Reforms AKIRA MATSUMOTO Rethinking the Concept of Credit Creation and the Recent Policy of the Bank of Japan from

Marxism Economics SRINIVAS YANAMANDRA Financial Instability, Regulatory Reforms, and Bank Governance: Lessons from the East Asian

Financial Crisis Room, 302A: MONEY AND ECONOMIC THEORY MODERATOR: ASHTON PHILLIPS GREG HANNSGEN

Inside Money in a Kaldor-Kalecki-Steindl Fiscal-Policy Model: Proposed Roles for the Unit of Account, Leverage, and Financial Fragility

WESLEY MARSHALL Rebranding Monetarism and Keynesian SAULO CABELLO ABOUCHEDID The Currency Hierarchy and the Center-Periphery Relationship Revisited DAVID S. BIERI The Spatial Non-Neutrality of Money and its Role in Loschian Economic Geography 3:45 PM - 4:00 PM: BREAK

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4:00 PM – 5:15 PM SPECIAL SESSION IN HONOR OF PAUL DAVIDSON Room, Theater 103: MONEY AND THE REAL WORLD MODERATOR: MATTHEW FORSTATER PARTICIPANTS: 1) TRACY MOTT 2) STEVE FAZZARI 3) J. BARKLEY ROSSER 4) PETER SKOTT 5) JAN KREGEL 6) MARIO SECCARECCIA 7) MARC LAVOIE 8) JAMES K. GALBRAITH 9) ROBERT W. DIMAND 10) LORD ROBERT SKIDELSKY RACONTEUR: PAUL DAVIDSON 5:15 PM – 5:45 PM: BREAK 5:45 PM - 7:10 PM: KEYNOTE Room, Student Union: JAMES K. GALBRAITH, “THE END OF NORMAL” 7:30-8:00 PM: RECEPTION, STUDENT UNION 8:00 PM: DINNER, STUDENT UNION

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SATURDAY, SEPTEMBER 27 9:00 AM - 10:10 AM CONCURRENT SESSIONS Room, 302: ROUNDTABLE ON FUNCTIONAL FINANCE MODERATOR: PETER SKOTT PARTICIPANTS: 1) STEVE FAZZARI 2) JOSH MASON 3) MARIO SECCARECCIA 4) MARC LAVOIE 5) PETER SKOTT Room, 302A: FINANCIALIZATION AND SECURITIZATION MODERATOR: FARUK ULGEN LAURENT BARATIN & THIBAULT LAURENTJOYE

Minsky Revisited: A Story of the Reversal of Hierarchy Between Real and Financial Sectors NICHOLAS SNOWDEN Asset Shortages and the Great Recession: A Kaldorian Perspective JESUS MUNOZ

A Minskyan Analysis of Commonalities and Patterns Between the Financial Crisis of Mexico 1994 and Greece 2007: Old Problems vs. New Ills

10:15 AM - 10:30 AM: BREAK

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10:30 AM - 11:45 AM CONCURRENT SESSIONS Room, 302: THE FATE OF THE EUROZONE MODERATOR: PAVLINA TCHERNEVA

ARTURO HUERTA GONZALEZ Approaches to the Exit from the Crisis in the Euro Zone

ROB PARENTEAU Exiting Austerity Without Exiting the Euro

ENNO SCHRODER Eurozone Imbalances: Measuring the Extent of Expenditure Switch

Room, 302A: HETERODOX MICROECONOMICS AND SOCIAL PROVISIONING: A SESSION IN HONOR OF FRED

LEE MODERATOR: ZDRAVKA TODOROVA

ZDRAVKA TODOROVA Culture-Nature Processes and Social Provisioning

TAE-HEE JO Heterodox Microeconomics and Heterodox Microfoundations

GYUN GU A Post Keynesian View of Price Stability

ERIK DEAN Market Equities and the Going Enterprise

TUNA BASKOY Social Provisioning Process, Market Instability, and Managed Competition

11:45 AM - 1:00 PM: LUNCH, STUDENT UNION KEYNOTE: LORD ROBERT SKIDELSKY, “THE FUTURE OF WORK”

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1:00 PM - 2:15PM CONCURRENT SESSIONS Room, 302: THE ROLE OF FISCAL POLICY IN CONTEMPORARY ECONOMICS MODERATOR: PETER SKOTT

EUGENIA CORREA Fiscal Policy and Public Debt MARIO SECCARECCIA The Revival of Fiscalism: Does the Composition of Public Spending Matter? PAVLINA TCHERNEVA

The Role of Fiscal Policy in Contemporary Economics STEPHANIE KELTON

Room, 302A: THE ROLE OF HETERODOX MICROECONOMICS IN HETERODOX ECONOMICS MODERATOR: MITCH GREEN STEVE FAZZARI

Household Income, Demand, and Saving: Deriving Macro Data with Micro Data Concepts

CHRISTIAN DODGE A Heterodox Criticism of Post Keynesian Efficiency Wage Theoryies ALEJANDRO GARAY Mining the Data: Investment Dynamics in the Peruvian Mining Industry FRED LEE

The Role of Microeconomics in Heterodox Economics: A View of a Heterodox Microeconomic Theorist

2:15 PM – 2:30 PM: BREAK

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2:30 PM – 3:45 PM CONCURRENT SESSIONS Room, 302: THE FUTURE OF POST KEYNESIAN ECONOMICS MODERATOR: PAYAM SHARIFI

SUDEEP REGMI

The State Capital Relationship at the Productive Core of the Economy AVRAHAM BARANES & MITCH GREEN A Network Theory of Institutional Adjustment

J. BARKLEY ROSSER, JR. Implications of Complex Behavioral Economics for Post Keynesian Economics JACK SUSTMAN Keynes Scholarship for the 21st Century Room, 302A: DISTRIBUTION AND GOVERNMENT POLICY MODERATOR: JOHN KOMLOS TANWEER AKRAM & ANUPAM DAS Determinants of Long-Term Japanese Government Bonds’ Low Nominal Yield SHIJUAN LI

Local Government Behavior: From “Compete for Economic Growth” to “Compete for Inhabitants’ Satisfaction” – And Governance of China’s Local Government

AN LI Profit Rate, Distribution, and Technology in China’s Industrial Enterprises, 1978-2011 DANIELLE GUIZZO The Redesign of Biopolitics Through Keynesian Economics 3:45 PM – 4:00 PM: BREAK

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4:00 PM – 5:15 PM CONCURRENT SESSIONS Room, 302: STOCK FLOW CONSISTENT MODELING AND ITS APPLICATIONS MODERATOR: SALIHA JLASSI

MATTHEW BERG & BRIAN HARTLEY

Intermediate Production in a Stock-Flow Consistent Model with Environmental Extensions MIGUEL CARRION & DIRK EHNTS

The Roads Not Taken: Graph Theory and Macroeconomic Regimes in Stock-Flow Consistent Modeling

OLIVER PICEK A SFC Model of the US Economy with a Special Emphasis on Explaining Sectoral Financial Balances

ANTOINE GODIN, ALESSANDRO CAIANI, & EUGENIO CAVERZASI Innovation, Demand, and Finance in an Agent-Based Stock-Flow Consistent Model Room, 302A: CONNECTING APPROACHES IN HETERODOX ECONOMICS: A SESSION IN HONOR OF FRED

LEE MODERATOR: ZDRAVKA TODORVA PARTICIPANTS: 1) JOHN HENRY 2) GARY MONGIOVI 3) MARC LAVOIE 4) JAN KREGEL 5:15 PM – 5:45 PM: BREAK

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5:45 PM - 7:00 PM: RECEPTION, STUDENT UNION 7:00 PM: DINNER, STUDENT UNION A Celebration of Post Keynesian Economics: M.E. Sharpe and the Journal of Post

Keynesian Economics, Past, Present, Future The International Post Keynesian Workshop: Trieste, the University of Tennessee, and the

University of Missouri – Kansas City

Keynote Address: Lord Robert Skidelsky, Economics After the Crash: What Should Students Be Taught?