- Amherst, Massachusetts, United States
Gerald Epstein
University of Massachusetts Amherst, Economics, Faculty Member
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Madagascar, one of the poorest countries in the world, faces many challenges. But recent political stability, debt cancellation, and a strong developmental plan for the future embedded in the Madagascar Action Plan – in addition to... more
Madagascar, one of the poorest countries in the world, faces many challenges. But recent political stability, debt cancellation, and a strong developmental plan for the future embedded in the Madagascar Action Plan – in addition to Madagascar's long-standing advantages of great mineral and environmental wealth – hold great promise for Madagascar's near and medium term future. Epstein, Heintz, Ndikumana and Change look closely at the country's economy, and recommend a shift away from the current IMF-based macroeconomic framework, toward one that focuses on growth, development and poverty reduction.
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At least since the Great Depression economic policy analysis has been marked by the persistent opposition of two divergent philosophies, one based on faith in markets and the other on the virtues of the state. Robert Dahl and Charles... more
At least since the Great Depression economic policy analysis has been marked by the persistent opposition of two divergent philosophies, one based on faith in markets and the other on the virtues of the state. Robert Dahl and Charles Lindblom long ago recognized the futility of this opposition, arguing in Politics, Economics and Welfare (1953), that market and state are complementary rather than competing instruments in the coordination of economic activity. The evidence clearly supports the notion of state-market complementarity. Among ...
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In this note we argue that the conventional banker wisdom is incorrect. First, proprietary trading, properly defined and contextualized, had a great deal to do with the crisis. We produce several types of evidence to suggest that... more
In this note we argue that the conventional banker wisdom is incorrect. First, proprietary trading, properly defined and contextualized, had a great deal to do with the crisis. We produce several types of evidence to suggest that proprietary investments and trading were large and had a significant impact on the crisis. For example, we cite evidence that by mid-April of 2008 large banks had lost roughly $230 billion dollars on their super-senior CDO proprietary holdings, which regulators and other interested parties believed were simply inventories of assets held to facilitate client trading. If one makes the crude assumption that this represents a loss of approximately one-third of their value, then banks were holding three quarters of a trillion dollars of these highly risky assets. Clearly, proprietary trading, properly defined, was a major cause of the recent crisis. Second, we present rough estimates that sug- gest that this type of trading and investment was much more important...
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... 3 This section draws almost entirely from private communication from Mr. YV Reddy, former Governor of the Reserve Bank of India and Mrs. Shyamala Gopinath, Deputy Governor, Reserve Bank of India, who very generously gave of their time... more
... 3 This section draws almost entirely from private communication from Mr. YV Reddy, former Governor of the Reserve Bank of India and Mrs. Shyamala Gopinath, Deputy Governor, Reserve Bank of India, who very generously gave of their time and expertise in describing India's ...
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... 30 billion (in 2004 prices): 1. Public investment/infrastructure: R5-7.5 billion 2. Income transfers and social support: R10-20 billion 3. Credit subsidies to businesses ... xx An Employment-TargetedEconomic Program for South Africa... more
... 30 billion (in 2004 prices): 1. Public investment/infrastructure: R5-7.5 billion 2. Income transfers and social support: R10-20 billion 3. Credit subsidies to businesses ... xx An Employment-TargetedEconomic Program for South Africa substitute for employing workers as their ...
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In the last two decades, there has been a global sea change in the theory and practice of central banking. The currently dominant 'best practice' approach to central banking consists of the following: (1) central bank independence... more
In the last two decades, there has been a global sea change in the theory and practice of central banking. The currently dominant 'best practice' approach to central banking consists of the following: (1) central bank independence (2) a focus on inflation fighting (including adopting formal 'inflation targeting') and (3) the use of indirect methods of monetary policy (that is,
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True vitelliform dystrophy rarely appears in the adult population. We describe 10 cases in adults of bilateral vitelliform lesions clinically mistaken for Best's disease. Fluorescein angiography is a useful tool in distinguishing this... more
True vitelliform dystrophy rarely appears in the adult population. We describe 10 cases in adults of bilateral vitelliform lesions clinically mistaken for Best's disease. Fluorescein angiography is a useful tool in distinguishing this dystrophy from Best's disease or other diseases. The angiographic findings suggest pigment epithelial disease. Adult vitelliform degeneration may lead to dry atrophic macular degeneration in a similar
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... To be sure, some FDI does come to South Africa, and, presumably, does generate some benefits. The question for monetary policy is: can South Africa attract more, high quality FDI by keeping inflation low? The evidence suggests ...
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Early in 1932 the Federal Reserve System made a serious attempt to reverse the "Great Contraction" through expansionary open market operations, but aban-doned it a few months later. In this paper we offer an... more
Early in 1932 the Federal Reserve System made a serious attempt to reverse the "Great Contraction" through expansionary open market operations, but aban-doned it a few months later. In this paper we offer an interpretation of the episode that throws new light on the ...
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This paper argues that gross, short-term capital mobility is excessive, but that long-term net capital mobility remains low. This combination of extremely high gross, but low net capital mobility can create great difficulties in achieving... more
This paper argues that gross, short-term capital mobility is excessive, but that long-term net capital mobility remains low. This combination of extremely high gross, but low net capital mobility can create great difficulties in achieving full employment. However, these difficulties fundamentally depend on the political structure and the choices made in individual nations; they do not result from technological advances,
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Abstract This paper provides an alternative to the two prevalent models of the linkage between domestic macroeconomic policy and the international economy in the face of the recent growth of global financial markets. The first, the... more
Abstract This paper provides an alternative to the two prevalent models of the linkage between domestic macroeconomic policy and the international economy in the face of the recent growth of global financial markets. The first, the 'insular'model, suggests that countries retain virtually total control over their economic destinies. The second, the global neo‐classical model, suggests that international markets deprive national economies of the instruments needed to pursue active macroeconomic policies. We present an agency‐ ...
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... banks as if they maximize a weighted average of industrial and financial profit rates ... I have analyzed so far the structure of finance and industry relations, and labor capital relations ... Integrated Independent y^ Independent y^... more
... banks as if they maximize a weighted average of industrial and financial profit rates ... I have analyzed so far the structure of finance and industry relations, and labor capital relations ... Integrated Independent y^ Independent y^ SPECULATIVE RENTIER y/ RENTIER y/ FINANCE yS y ...
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Many thanks to Nancy Barthelemy and Debbie Zeidenberg for their excellent editorial work, and to Nancy Barthelemy and Judy Fogg for their outstanding organizational help. We thank all those who attended the November meeting and... more
Many thanks to Nancy Barthelemy and Debbie Zeidenberg for their excellent editorial work, and to Nancy Barthelemy and Judy Fogg for their outstanding organizational help. We thank all those who attended the November meeting and contributed suggestions. We also thank Noam ...