There are two sides to the lending of money: the ‘micro’ and the ‘macro’. The microeconomic side comprises various routines performed by bankers in assessing the…
There are two sides to the lending of money: the ‘micro’ and the ‘macro’. The microeconomic side comprises various routines performed by bankers in assessing the profitability of an investment. The macroeconomic side reflects the impact of such institutional banking routines on the rest of the economy. This chapter examines the repercussions of a few generally accepted bank precepts on the overall dynamics of the economic system by unearthing the monetary theory of Silvio Gesell and applying it to three important ‘macro’ scenarios: Schumpeterian innovation, Veblen's absentee ownership and technically productive investment, and Malthus's theory of market gluts.
The passionate debate, among policy makers and theorists, over the appropriateness of protecting infant industries in developing countries was one of greatest interest in…
The passionate debate, among policy makers and theorists, over the appropriateness of protecting infant industries in developing countries was one of greatest interest in the economic literature of the eighteenth and nineteenth centuries. On one side of the argument are the British advocates of free trade, concocting subtle arguments to neutralize the boisterous aspirations of insubordinate colonies (and former colonies) yearning for independence; on the other, the standard‐bearers of Economic Nationalism, responding fiercely to the incessant firing of classical contentions. Such reaction to laissez‐faire economics gave birth to a corpus of ideas which was to form the core intellectual bulwark of commercial protectionism and cultural freedom. Discusses and comments on the conflicting views which animated the confrontation through examination of the major works of the most illustrious exponents of both factions.
During the first decades of the 20th century, German Reformer Silvio Gesell (1862‐1930) championed with a certain success the reforming wave of the epoch by complementing…
During the first decades of the 20th century, German Reformer Silvio Gesell (1862‐1930) championed with a certain success the reforming wave of the epoch by complementing ingenious solutions to some of the most important economic issues of his time with theoretical insights that were as radical as they were penetrating. The purpose of this paper is to offer an introduction to such intuitions, whose validity had been recognized even by a few distinguished academics of the 1930s, but which, owing to the extreme complications that eventually mired German intellectual production in its quasi‐entirety before WWII, failed to preserve the deserved consideration, however slight, they had earned when first formulated. A reappraisal of Gesell's contributions, considering the importance of his main themes, may be worthwhile, all the more so as these deal with questions unsolved to this day.
The Nazi economic recovery, achieved between 1933 and 1938, displayed striking features of brilliant economic overhauling of a capitalist machine that had been plagued by a prolonged crisis. The means employed to effect the recovery appear to follow a Malthusian exercise in the rehabilitation of the function of effective demand: the Nazis, prompted by expediency and necessity, took remedial action that was very much in consonance with the canons of classical political economy. The succinct analysis of such an exercise in the context of the strong governmental regimentation of the Third Reich may provide insight into the nature and future of the capitalist regime, in the light of the fact that its principles, business and philosophical, and its implications for the world at large, so far, have not shown a marked departure from the way in which they were understood by the spirit of the 1930s, in Germany, as well as abroad.
Thorstein Veblen, though recognized as a “classic” author, has been since his death in 1929 virtually ignored by the public (academic and otherwise). In light of the fact…
Thorstein Veblen, though recognized as a “classic” author, has been since his death in 1929 virtually ignored by the public (academic and otherwise). In light of the fact that he may possibly have been the most important social scientist of the modern era, such neglect is a shame that needs to be erased. This article, a conceptual paper, aims to focus on the particular philosophical view that supports the whole edifice of Veblen's social frescoes.
The article argues that the extraordinary tenor of Veblen's economic investigation stems from a semi‐hidden fascination of the author with “occult agencies,” that is, with the invisible realms of idolatry, devout belief, and national “genius.”
Veblen, the article maintains, is the first modern, unconfessed, explorer of the spiritual world, whose uncharted domains he mapped for laying the foundations of economic analysis. A radical, unique turn in the history of thought, whose effects, however, have suffered the most profound incomprehension owing to a certain queerness of style: this strangeness was the tormented combination of Veblen's confessed atheism with his instinctive draw towards the praeternatural.
This fundamental question surrounding the inner mechanics of Veblen's beautiful political economy – the only social scientist Einstein would read – is presented coherently in this article for the first time.