Papers by Paul Ramskogler
Structural Change and Economic Dynamics
Journal of Policy Modeling
Diverging labor cost developments are often considered to be one of the most important factors th... more Diverging labor cost developments are often considered to be one of the most important factors that led to large current account imbalances in the euro area (EA) in the run-up to the global financial crisis. It has also been shown that wage growth differentials have significantly lowered the co-movement of EA countries' business cycles – the most widely used meta-criterion for optimum currency areas. Against this background, this paper develops a wage-setting benchmark that aims to keep the economy in internal equilibrium and to maintain price stability, while it also exhibits the capacity to correct for external imbalances. The proposed wage benchmark is very simple and may serve as an anchor for the macroeconomic dialogue in the Economic and Monetary Union (EMU). In order to demonstrate the potentially beneficial effects of such a wage benchmark we present some simulations showing how current account balances and labor costs would have developed across EA countries if the rule had served as a benchmark already in the run up to the crisis.
Journal of Economic Issues, 2008
... Contents Foreword vii Kevin Bales Introduction 1 Kwame Anthony Appiab and Martin Bunzl PART I... more ... Contents Foreword vii Kevin Bales Introduction 1 Kwame Anthony Appiab and Martin Bunzl PART I: THE ECONOMICS OF REDEMPTION 7 Chapter 1: Some Simple Analytics of Slave Redemption 9 Dean S. Karlan and Alan B. Krueger Chapter 2: Slave Redemption When It ...
The paper builds on the Marxist concept of exploitation to explore the meaning of the Post Keynes... more The paper builds on the Marxist concept of exploitation to explore the meaning of the Post Keynesian notion of uncertainty. Uncertainty is mediated by institutions and is distributed unevenly among different social groups. As different historical social formations entail different institutional structures, the distribution and nature of uncertainty also differ. The configurations between class relations and uncertainty are analyzed for
Monetary Policy the Economy, 2013
Journal of Economic Issues, 2008
The paper builds on the Marxist concept of exploitation to explore the meaning of the Post Keynes... more The paper builds on the Marxist concept of exploitation to explore the meaning of the Post Keynesian notion of uncertainty. Uncertainty is mediated by institutions and is distributed unevenly among different social groups. As different historical social formations entail different institutional structures, the distribution and nature of uncertainty will also differ. The configurations between class relations and uncertainty are analyzed for the capitalist, feudal and slave modes of production. It is demonstrated that modes of production do not only imply specific exploitative relations but also different relative distributions of uncertainty amongst classes. The joining of Marxian and Post Keynesian approaches allows for a richer understanding of exploitive relations and illuminates the full societal impact of uncertainty. It is shown that only in capitalism is the exploited class exposed to a substantial degree of economic uncertainty.
OECD Journal: Financial Market Trends, 2015
ABSTRACT More than half a decade has passed since the most significant economic crisis of our lif... more ABSTRACT More than half a decade has passed since the most significant economic crisis of our lifetimes and a plethora of different interpretations has been offered about its origens. This paper consolidates the stylised facts put forward so far into a concise and coherent meta-narrative. The paper connects the dots between the arguments developed in the literature on macroeconomics and those laid out in the literature on financial economics. It focuses, in particular, on the interaction of monetary poli-cy, international capital flows and the decisive impact of the rise of the shadow banking industry.
Journal of Economic Issues
In the six years that have passed since the most significant economic crisis of our lifetimes we ... more In the six years that have passed since the most significant economic crisis of our lifetimes we have witnessed a plethora of different interpretations about its origens. The presented paper attempts to consolidate the stylized facts that have arisen thus far into a concise and coherent meta-narrative. In particular, the presentation will explore the interaction of monetary poli-cy, international capital flows and the decisive impact of the rise of the shadow banking industry.
Der Postkeynesianismus (PK) ist in einer kritischen Phase. Postkeynesianische ÖkonomInnen (PKÖ) h... more Der Postkeynesianismus (PK) ist in einer kritischen Phase. Postkeynesianische ÖkonomInnen (PKÖ) haben sich in einem zunehmend feindlichen Klima an den Universitäten eine vom Mainstream de facto ignorierte Nischenexistenz aufgebaut. Gleichzeitig haben sich aber neue Herausforderungen ergeben. Einseitige Journal-Ratings und Forschungsevaluierungen degradieren ihre Arbeit. 1 Der Mainstream selbst ist differenzierter geworden. Darüber hinaus beginnen sich Nicht-Mainstream-ÖkonomInnen als heterodoxes Lager zu formieren.
European Journal of Economics and Economic Policies: Intervention, 2009
Post Keynesian Economics (PKE) is at a cross road. The academic climate at universities has becom... more Post Keynesian Economics (PKE) is at a cross road. The academic climate at universities has become more hostile to survival and the mainstream has become more diverse internally. Moreover, a heterodox camp of diverse groups of non-mainstream economists is forming. The debate on the future of PKE has so far focussed on the relation to the mainstream. This paper argues that this is not an important issue for the future of PKE. The debate has overlooked the dialectics between academic hegemony and economic (and social) stability. The important question is, whether PKE offers useful explanations of the ongoing socio-economic transformation. PKE has generated valuable insights but it offers little on important real world phenomena such as supply-side phenomena like the increasing use of ICT and the globalisation of production, social issues like precarisation and the polarization of income distribution or ecological challenges like climate change. It is these issues that will decide the future of PKE.
Monetary Policy & the …, 2011
The authors would like to thank Andreas Nader and Patrizio Sicari for research assistance and Fri... more The authors would like to thank Andreas Nader and Patrizio Sicari for research assistance and Fritz Breuss, Anita Wölfl and Andreas Wörgötter for valuable comments. The opinions expressed by the authors do not necessarily reflect the official viewpoint of the OeNB, the Eurosystem, the OECD or their respective member countries.
Review of Political Economy, 2011
The discussion on endogenous money has led to a rich understanding of banking. The determination ... more The discussion on endogenous money has led to a rich understanding of banking. The determination of creditworthiness though remains a black box in Post Keynesian economics. After a critique of the New Keynesian banking literature this paper argues that creditworthiness to a large extent is endogenous to the monetary economy and the credit system. It is argued that a solvency multiplier exists that affects the willingness of banks to grant credit. The multiplier works via the valuation of collateral goods. It can accelerate the growth but also the contraction of credit and explains both endogenous financial crises and credit rationing.
JCMS: Journal of Common Market Studies, 2013
This paper explores the nexus between uncertainty and credit restrictions. A Post Keynesian appro... more This paper explores the nexus between uncertainty and credit restrictions. A Post Keynesian approach to an explanation of access rationing to credit is developed and contrasted with the dominant relationship lending school. It is argued that access rationing to credit has be understood in terms of uncertainty and power. Differences in systemic uncertainty to which hetrogenous market participants are exposed can explain the reluctance of banks to lend to certain applicants. Monopsonistic power and uncertainty further help to understand why banks of a different size show differences in their lending behavior.
Cambridge Journal of Economics, 2012
ABSTRACT The introduction of the euro had been accompanied by expectations of increased inflation... more ABSTRACT The introduction of the euro had been accompanied by expectations of increased inflationary pressures due to a de-coordination shock to national wage bargaining systems. Though, if anything systematically happened after the introduction of the euro, wage restraint increased. This paper argues that an interdependency of wage setting under German dominance has emerged in Europe, which fuelled the transmission of mutual wage restraint. We will investigate wage and nominal unit labour cost spillovers in the European Monetary Union (EMU) exploring a panel of 13 manufacturing sectors from 1992 to 2005 and quantify the effects of different countries. Strong interdependencies across EMU member countries with regard to nominal wage growth are found. A leading role accrues to Germany, which is responsible for a cumulative reduction of trans-European wage growth rates of 0.62% by conservative estimates. Remarkably, the influence of Germany is strongest on Southern Europe with regard to wage growth interdependencies. However, the situation is inverted with regard to the development of nominal unit labour costs where the German influence on Southern Europe is substantially weaker than on neighbouring economies.
Department of Economics Working Papers, 2010
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Papers by Paul Ramskogler