front cover of After Capitalism
After Capitalism
Horizons of Finance, Culture, and Citizenship
Ferguson, Kennan
Rutgers University Press, 2016
From Thomas Piketty to David Harvey, scholars are increasingly questioning whether we are entering into a post-capitalist era. If so, does this new epoch signal the failure of capitalism and emergence of alternative systems? Or does it mark the ultimate triumph of capitalism as it evolves into an unstoppable entity that takes new forms as it engulfs its opposition? 
 
After Capitalism brings together leading scholars from across the academy to offer competing perspectives on capitalism’s past incarnations, present conditions, and possible futures.  Some contributors reassess classic theorizations of capitalism in light of recent trends, including real estate bubbles, debt relief protests, and the rise of a global creditocracy. Others examine Marx’s writings, unemployment, hoarding, “capitalist realism,” and coyote (trickster) capitalism, among many other topics. Media and design trends locate the key ideologies of the current economic moment, with authors considering everything from the austerity aesthetics of reality TV to the seductive smoothness of liquid crystal. 
 
Even as it draws momentous conclusions about global economic phenomena, After Capitalism also pays close attention to locales as varied as Cuba, India, and Latvia, examining the very different ways that economic conditions have affected the relationship between the state and its citizens. Collectively, these essays raise provocative questions about how we should imagine capitalism in the twenty-first century. Will capitalism, like all economic systems, come to an end, or does there exist in history or elsewhere a hidden world that is already post-capitalist, offering alternative possibilities for thought and action?  
 
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Aftershocks
Economic Crisis and Institutional Choice
Edited by Anton Hemerijck, Ben Knapen and Ellen van Doorne
Amsterdam University Press, 2009

Although it would be premature to presume to identify the exact repercussions of the current economic crisis, it is clear that it will have profound effects in the political, economic, and social spheres. Written in the midst of the deepest economic crisis since the Great Depression, Aftershocks contains twenty-four essays—based on interviews with scholars, prominent European politicians, and leading figures from business and banking—that reflect on the origins of the crisis as well as the possible social, economic, and political transformations it may engender. Among the many contributors are Barry Eichengreen, Tony Atkinson, David Soskice, Nancy Birdsall, Amitai Etzioni, Helmut Schmidt, and Jacques Delors.

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Against Austerity
How we Can Fix the Crisis they Made
Richard Seymour
Pluto Press, 2014

Five years into capitalism's deepest crisis, which has led to cuts and economic pain across the world, Against Austerity addresses a puzzling aspect of the current conjuncture: why are the rich still getting away with it? Why is protest so ephemeral? Why does the left appear to be marginal to political life?

In an analysis which challenges our understanding of capitalism, class and ideology, Richard Seymour shows how ‘austerity’ is just one part of a wider elite plan to radically re-engineer society and everyday life in the interests of profit, consumerism and speculative finance.

But Against Austerity is not a gospel of despair. Seymour argues that once we turn to face the headwinds of this new reality, dispensing with reassuring dogmas, we can forge new collective resistance and alternatives to the current system. Following Brecht, Against Austerity argues that the good old things are over, it's time to confront the bad new ones.

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Business as Usual
The Economic Crisis and the Failure of Capitalism
Paul Mattick
Reaktion Books, 2011

The recent global economic downturn has affected nearly everyone in every corner of the globe. Its vast reach and lingering effects have made it difficult to pinpoint its exact cause, and while some economists point to the risks inherent in the modern financial system, others blame long-term imbalances in the world economy. Into this debate steps Paul Mattick, who, in Business as Usual, explains the global economic downturn in relation to the development of the world economy since World War II, but also as a fundamental example of the cycle of crisis and recovery that has characterized capitalism since the early nineteenth century.

Mattick explains that today’s recession is not the result of a singular financial event but instead is a manifestation of long-term processes within the world economy. Mattick argues that the economic downturn can best be understood within the context of business cycles, which are unavoidable in a free-market economy. He uses this explanation as a springboard for exploring the nature of our capitalist society and its prospects for the future.

Although Business as Usual engages with many economic theories, both mainstream and left-wing, Mattick’s accessible writing opens the subject up in order for non-specialists to understand the current economic climate not as the effect of a financial crisis, but as a manifestation of a truth about the social and economic system in which we live. As a result the book is ideal for anyone who wants to gain a succinct and jargon-free understanding of recent economic events, and, just as important, the overall dynamics of the capitalist system itself.

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Capitalism and the Historians
Edited by F. A. Hayek
University of Chicago Press, 1963
The views generally held about the rise of the factory system in Britain derive from highly distorted accounts of the social consequences of that system—so say the distinguished economic historians whose papers make up this book. The authors offer documentary evidence to support their conclusion that under capitalism the workers, despite long hours and other hardships of factory life, were better off financially, had more opportunities, and led a better life than had been the case before the Industrial Revolution.
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Central American Recovery and Development
William L. Ascher and Ann Hubbard, eds.
Duke University Press, 1989
The International Commission for Central American Recovery and Development was created in 1987 to analyze development in the region and to make recommendations to the region’s governments and to the international community. The essays in this volume were written by experts in Central American development, economics, politics, and administration who were asked by the commission to synthesize existing knowledge on Central America’s prospects for aid, trade, and institutional reform, and to propose creative approaches to the problems facing the region. The Center for International Development Research at Duke University was chosen to perform the editorial and support tasks for the commission.
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The Changing Face of Economics
Conversations with Cutting Edge Economists
David Colander, Richard P. F. Holt, and J. Barkley Rosser, Jr.
University of Michigan Press, 2004
The Changing Face of Economics gives the reader a sense of the modern economics profession and how it is changing. The volume does so with a set of nine interviews with cutting edge economists, followed by interviews with two Nobel Prize winners, Paul Samuelson and Kenneth Arrow, reflecting on the changes that are occurring. What results is a clear picture of today's economics--and it is no longer standard neoclassical economics.

The interviews and commentary together demonstrate that economics is currently undergoing a fundamental shift in method and is moving away from traditional neoclassical economics into a dynamic set of new methods and approaches. These new approaches include work in behavioral economics, experimental economics, evolutionary game theory and ecological approaches, complexity and nonlinear dynamics, methodological analysis, and agent-based modeling.

David E. Colander is Professor of Economics, Middlebury College.

J. Barkley Rosser, Jr., is Professor of Economics and Kirby L. Kramer Jr. Professor of Business Administration, James Madison University.

Richard P. F. Holt is Professor of Churchill Honors and Economics, Southern Oregon University.




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Children of the Great Recession
Irwin Garfinkel
Russell Sage Foundation, 2016
Many working families continue to struggle in the aftermath of the Great Recession, the deepest and longest economic downturn since the Great Depression. In Children of the Great Recession, a group of leading scholars draw from a unique study of nearly 5,000 economically and ethnically diverse families in twenty cities to analyze the effects of the Great Recession on parents and young children. By exploring the discrepancies in outcomes between these families—particularly between those headed by parents with college degrees and those without—this timely book shows how the most disadvantaged families have continued to suffer as a result of the Great Recession.
 
Several contributors examine the recession’s impact on the economic well-being of families, including changes to income, poverty levels, and economic insecurity. Irwin Garfinkel and Natasha Pilkauskas find that in cities with high unemployment rates during the recession, incomes for families with a college-educated mother fell by only about 5 percent, whereas families without college degrees experienced income losses three to four times greater. Garfinkel and Pilkauskas also show that the number of non-college-educated families enrolled in federal safety net programs—including Medicaid, the Earned Income Tax Credit, and the Supplemental Nutrition Assistance Program (or food stamps)—grew rapidly in response to the Great Recession.
 
Other researchers examine how parents’ physical and emotional health, relationship stability, and parenting behavior changed over the course of the recession. Janet Currie and Valentina Duque find that while mothers and fathers across all education groups experienced more health problems as a result of the downturn, health disparities by education widened.   Daniel Schneider, Sara McLanahan and Kristin Harknett find decreases in marriage and cohabitation rates among less-educated families, and Ronald Mincy and Elia de la Cruz-Toledo show that as unemployment rates increased, nonresident fathers’ child support payments decreased. William Schneider, Jeanne Brooks-Gunn, and Jane Waldfogel show that fluctuations in unemployment rates negatively affected parenting quality and child well-being, particularly for families where the mother did not have a four-year college degree.
 
Although the recession affected most Americans, Children of the Great Recession reveals how vulnerable parents and children paid a higher price. The research in this volume suggests that policies that boost college access and reinforce the safety net could help protect disadvantaged families in times of economic crisis.
 
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The Classical Debt
Greek Antiquity in an Era of Austerity
Johanna Hanink
Harvard University Press, 2017

Ever since the International Monetary Fund’s first bailout of Greece’s sinking economy in 2010, the phrase “Greek debt” has meant one thing to the country’s creditors. But for millions who claim to prize culture over capital, it means something quite different: the symbolic debt that Western civilization owes to Greece for furnishing its principles of democracy, philosophy, mathematics, and fine art. Where did this other idea of Greek debt come from, Johanna Hanink asks, and why does it remain so compelling today?

The Classical Debt investigates our abiding desire to view Greece through the lens of the ancient past. Though classical Athens was in reality a slave-owning imperial power, the city-state of Socrates and Pericles is still widely seen as a utopia of wisdom, justice, and beauty—an idealization that the ancient Athenians themselves assiduously cultivated. Greece’s allure as a travel destination dates back centuries, and Hanink examines many historical accounts that express disappointment with a Greek people who fail to live up to modern fantasies of the ancient past. More than any other movement, the spread of European philhellenism in the eighteenth and nineteenth centuries carved idealized conceptions of Greece in marble, reinforcing the Western habit of comparing the Greece that is with the Greece that once was.

Today, as the European Union teeters and neighboring nations are convulsed by political unrest and civil war, Greece finds itself burdened by economic hardship and an unprecedented refugee crisis. Our idealized image of ancient Greece dangerously shapes how we view these contemporary European problems.

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Communities of Work
Rural Restructuring in Local and Global Contexts
William W. Falk
Ohio University Press, 2003

The image of rural America portrayed in this illuminating study is one that is vibrant, regionally varied, and sometimes heroic. Communities of Work focuses on the ways in which rural people and places are affected by political, social, and economic forces far outside their control and how they sustain themselves and their communities in response.

Bringing together the two fundamental concepts of community—where the relationships and practices of daily life occur—and work, in which an elementary exchange occurs, Communities of Work bridges several fields of study. Presented here is the contextual and embedded nature of social relations and the complexity involved in understanding them. Through the use of multiple case studies, the authors apply diverse theories and methods in seeking an integrated outcome, one captured by “communities of work.”

Beginning with a description of the broad changes in work and economic activities across the United States, ranging from the Ohio River Valley to a western boomtown, the book shifts its focus to the interplay of work, family, and local networks in time and place. Activities range from fishing in the Mississippi Delta to farming and family life in the Midwest. The authors then highlight how rural people and places respond to extra-local, increasingly global forces in settings as diverse as rural South Carolina and Wisconsin.

A certain communitarian theme runs through Communities of Work. It is about people and communities not merely reacting, but instead responding in ways that reflect their local culture, while being cognizant of the larger world within which they live.

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The Creation and Destruction of Value
The Globalization Cycle
Harold James
Harvard University Press, 2012

Harold James examines the vulnerability and fragility of processes of globalization, both historically and in the present. This book applies lessons from past breakdowns of globalization—above all in the Great Depression—to show how financial crises provoke backlashes against global integration: against the mobility of capital or goods, but also against flows of migration. By a parallel examination of the financial panics of 1929 and 1931 as well as that of 2008, he shows how banking and monetary collapses suddenly and radically alter the rules of engagement for every other type of economic activity.

Increased calls for state action in countercyclical fiscal policy bring demands for trade protection. In the open economy of the twenty-first century, such calls are only viable in very large states—probably only in the United States and China. By contrast, in smaller countries demand trickles out of the national container, creating jobs in other countries. The international community is thus paralyzed, and international institutions are challenged by conflicts of interest. The book shows the looming psychological and material consequences of an interconnected world for people and the institutions they create.

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The Crisis of Capitalist Democracy
Richard A. Posner
Harvard University Press, 2010

Following his timely and well-received A Failure of Capitalism, Richard Posner steps back to take a longer view of the continuing crisis of democratic capitalism as the American and world economies crawl gradually back from the depths to which they had fallen in the autumn of 2008 and the winter of 2009.

By means of a lucid narrative of the crisis and a series of analytical chapters pinpointing critical issues of economic collapse and gradual recovery, Posner helps non-technical readers understand business-cycle and financial economics, and financial and governmental institutions, practices, and transactions, while maintaining a neutrality impossible for persons professionally committed to one theory or another. He calls for fresh thinking about the business cycle that would build on the original ideas of Keynes. Central to these ideas is that of uncertainty as opposed to risk. Risk can be quantified and measured. Uncertainty cannot, and in this lies the inherent instability of a capitalist economy.

As we emerge from the financial earthquake, a deficit aftershock rumbles. It is in reference to that potential aftershock, as well as to the government’s stumbling efforts at financial regulatory reform, that Posner raises the question of the adequacy of our democratic institutions to the economic challenges heightened by the greatest economic crisis since the Great Depression. The crisis and the government’s energetic response to it have enormously increased the national debt at the same time that structural defects in the American political system may make it impossible to pay down the debt by any means other than inflation or devaluation.

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The Crisis of Neoliberalism
Gérard Duménil and Dominique Lévy
Harvard University Press, 2013
This book examines “the great contraction” of 2007–2010 within the context of the neoliberal globalization that began in the early 1980s. This new phase of capitalism greatly enriched the top 5 percent of Americans, including capitalists and financial managers, but at a significant cost to the country as a whole. Declining domestic investment in manufacturing, unsustainable household debt, rising dependence on imports and financing, and the growth of a fragile and unwieldy global financial structure threaten the strength of the dollar. Unless these trends are reversed, the authors predict, the U.S. economy will face sharp decline.Summarizing a large amount of troubling data, the authors show that manufacturing has declined from 40 percent of GDP to under 10 percent in thirty years. Since consumption drives the American economy and since manufactured goods comprise the largest share of consumer purchases, clearly we will not be able to sustain the accumulating trade deficits.Rather than blame individuals, such as Greenspan or Bernanke, the authors focus on larger forces. Repairing the breach in our economy will require limits on free trade and the free international movement of capital; policies aimed at improving education, research, and infrastructure; reindustrialization; and the taxation of higher incomes.
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Economic Behaviour in Adversity
Jack Hirshleifer
University of Chicago Press, 1988
Conflict, disaster, and destruction—despite their historical and current significance—have not yet been adequately studied from the economic point of view. Economic Behaviour in Adversity brings together ten important essays, several previously unpublished, dealing with the choices people make in times of disaster and conflict. These essays help explain the possibilities and limits of human cooperation under severe environmental pressure.

Part I, "Disaster and Recovery," contains previously unpublished studies of major historical catastrophes, among them the Black Death of the fourteenth century, the Civil War in Russia that followed the Bolshevik revolution, and the mass bombing of Germany and of Japan during World War II. Accompanying the historical studies are several analytical papers that interpret the disaster experience.

The essays in Part II, "Cooperation and Conflict," represent innovative theoretical analyses based on a common theme—that cooperation and conflict are alternative strategies whereby individuals, groups, and different forms of social organization struggle with one another for evolutionary survival. Ultimately, these essays indicate, the political economy of the human species is an instance of Darwin's "economy of nature."
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The Effects of U.S. Trade Protection and Promotion Policies
Edited by Robert C. Feenstra
University of Chicago Press, 1997
Economists disagree on whether recent U.S. trade policies are harmful or helpful, but they all agree that there is a new trend toward focusing on results-oriented policies in specific markets and with particular trading partners. These twelve essays by leading international economists explore crucial issues in U.S. trade policy today. Topics examined include the markets for automobile and automobile parts in the United States and Japan, the U.S. response to "unfair" trading practices such as dumping, and the effects of industry- and country-specific policies. Examples include high-technology and agricultural industries and off-shore assembly in U.S. border cities.

The volume concludes that some policies can act to both protect imports and promote exports, that the threat of protectionist policies can often have effects that are as pronounced as their implementation, and that regulatory policy has as great an impact on trade and investment patterns as does trade policy itself. It will be of crucial interest to international trade economists, policy specialists, and political scientists.
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Electrifying Europe
The Power of Europe in the Construction of Electricity Networks
Vincent Lagendijk
Amsterdam University Press, 2008

Nowadays most consumers are aware of the European dimensions of their electricity supply. But what ideas lie behind this European network? In constructing electricity networks, Europe performed a Janus-faced function. On the one hand, a European network would bolster economic growth and peace. On the other, economic growth through electrification would increase military potential.
By combining a wide array of rarely used sources, this book unravels how engineers, industrialists, and policymakers used ideas of Europe to gain support for building a European system. By focusing on transnational and European actors, this book is a valuable addition to existing national histories of electrification. It is an original contribution to the history of technology, while also making the role of technology visible in more mainstream European history.

The empirical chapters show how ideas of European cooperation in general became intertwined with network planning during the Interwar period, although the Depression and WWII prevented a European electricity network from being constructed. The subsequent chapters describe the influence of the Marshall Plan on European network-building, focusing on both its economic and military aspects. The last chapter portrays how the Iron Curtain was contested. The troubled expansion of networks and capacity in Western Europe provided an underpinning for political rapprochement with the East in the 1970s and 1980s. Political and economic turmoil after 1989 accelerated this process, leading to an interconnected European system by 1995.

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The Experience Society
Consumer Capitalism Rebooted
Steven Miles
Pluto Press, 2020
Airbnb, gaming, escape rooms, major sporting events: contemporary capitalism no longer demands we merely consume things, but that we buy experiences. This book is concerned with the social, cultural and personal implications of this shift.

The technologically-driven world we live in is no closer to securing the utopian ideal of a leisure society. Instead, the pursuit of leisure is often an attempt to escape our everyday existence. Exploring examples including sport, architecture, travel and social media, Steven Miles investigates how consumer culture has colonised 'experiences', revealing the ideological and psycho-social tensions at the heart of the 'experience society'.

The first critical analysis of the experience economy by a UK sociologist sheds light on capitalism's ever more sophisticated infiltration of the everyday.
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The Experience Society
Consumer Capitalism Rebooted
Steven Miles
Pluto Press, 2020
Airbnb, gaming, escape rooms, major sporting events: contemporary capitalism no longer demands we merely consume things, but that we buy experiences. This book is concerned with the social, cultural and personal implications of this shift.

The technologically-driven world we live in is no closer to securing the utopian ideal of a leisure society. Instead, the pursuit of leisure is often an attempt to escape our everyday existence. Exploring examples including sport, architecture, travel and social media, Steven Miles investigates how consumer culture has colonized 'experiences', revealing the ideological and psycho-social tensions at the heart of the 'experience society'.

The first critical analysis of the experience economy by a UK sociologist sheds light on capitalism's ever more sophisticated infiltration of the everyday.
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Expulsions
Brutality and Complexity in the Global Economy
Saskia Sassen
Harvard University Press, 2014

Soaring income inequality and unemployment, expanding populations of the displaced and imprisoned, accelerating destruction of land and water bodies: today’s socioeconomic and environmental dislocations cannot be fully understood in the usual terms of poverty and injustice, according to Saskia Sassen. They are more accurately understood as a type of expulsion—from professional livelihood, from living space, even from the very biosphere that makes life possible.

This hard-headed critique updates our understanding of economics for the twenty-first century, exposing a system with devastating consequences even for those who think they are not vulnerable. From finance to mining, the complex types of knowledge and technology we have come to admire are used too often in ways that produce elementary brutalities. These have evolved into predatory formations—assemblages of knowledge, interests, and outcomes that go beyond a firm’s or an individual’s or a government’s project.

Sassen draws surprising connections to illuminate the systemic logic of these expulsions. The sophisticated knowledge that created today’s financial “instruments” is paralleled by the engineering expertise that enables exploitation of the environment, and by the legal expertise that allows the world’s have-nations to acquire vast stretches of territory from the have-nots. Expulsions lays bare the extent to which the sheer complexity of the global economy makes it hard to trace lines of responsibility for the displacements, evictions, and eradications it produces—and equally hard for those who benefit from the system to feel responsible for its depredations.

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Expulsions
Brutality and Complexity in the Global Economy
Saskia Sassen
Harvard University Press

An Observer Architecture Book of the Year

Soaring income inequality and unemployment, expanding populations of the displaced and imprisoned, accelerating destruction of land and water bodies: today’s socioeconomic and environmental dislocations cannot be fully understood in the usual terms of poverty and injustice, according to Saskia Sassen. They are more accurately understood as a type of expulsion—from professional livelihood, from living space, even from the very biosphere that makes life possible.

“Saskia Sassen’s Expulsions describes the global forces that make ever more tenuous and fragile most people’s grip on the places where they live.”
—Rowan Moore, The Observer

“Coupled with her earlier work, this may be a paradigm breaking/making work.”
—Michael D. Kennedy, Contemporary Sociology

“Once again, sociologist Sassen uses her considerable knowledge to think creatively at both the local and global levels…In place of the principle of inclusion in the pre-1980s Keynesian era, the planet is increasingly dominated by a principle of exclusion of people, land, natural resources, and water. Sassen presents a powerful conceptual analysis and an equally powerful and timely call to action.”
—M. Oromaner, Choice

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Foretelling the End of Capitalism
Intellectual Misadventures since Karl Marx
Francesco Boldizzoni
Harvard University Press, 2020

Intellectuals since the Industrial Revolution have been obsessed with whether, when, and why capitalism will collapse. This riveting account of two centuries of failed forecasts of doom reveals the key to capitalism’s durability.

Prophecies about the end of capitalism are as old as capitalism itself. None have come true. Yet, whether out of hope or fear, we keep looking for harbingers of doom. In Foretelling the End of Capitalism, Francesco Boldizzoni gets to the root of the human need to imagine a different and better world and offers a compelling solution to the puzzle of why capitalism has been able to survive so many shocks and setbacks.

Capitalism entered the twenty-first century triumphant, its communist rival consigned to the past. But the Great Recession and worsening inequality have undermined faith in its stability and revived questions about its long-term prospects. Is capitalism on its way out? If so, what might replace it? And if it does endure, how will it cope with future social and environmental crises and the inevitable costs of creative destruction? Boldizzoni shows that these and other questions have stood at the heart of much analysis and speculation from the early socialists and Karl Marx to the Occupy Movement. Capitalism has survived predictions of its demise not, as many think, because of its economic efficiency or any intrinsic virtues of markets but because it is ingrained in the hierarchical and individualistic structure of modern Western societies.

Foretelling the End of Capitalism takes us on a fascinating journey through two centuries of unfulfilled prophecies. An intellectual tour de force and a plea for political action, it will change our understanding of the economic system that determines the fabric of our lives.

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From Market-Places to a Market Economy
The Transformation of Rural Massachusetts, 1750-1850
Winifred Barr Rothenberg
University of Chicago Press, 1992
In this highly original empirical study, Winifred Barr Rothenberg documents the emergence of a market economy in rural Massachusetts between 1785 and 1800—decades before America's first industrial revolution. Drawing the data from exhaustive research in farm account books, probate documents, and town tax valuations the author makes a significant contribution to the long-standing and vigorous debate about the pace, pattern, and genesis of growth in the early American economy.

Rothenberg forcefully disputes recent historical interpretations of the preindustrial New England village as a so-called moral economy, insulated from the exigencies of the market. She discovers the simultaneous emergence of markets for farm produce, farm labor, and rural capital. Then, linking market integration to labor productivity growth and agricultural improvement, she confirms that market-led growth in Massachusetts agriculture lay at the origins of the American industrial revolution.
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The Great American Housing Bubble
What Went Wrong and How We Can Protect Ourselves in the Future
Adam J. Levitin and Susan M. Wachter
Harvard University Press, 2020

The definitive account of the housing bubble that caused the Great Recession—and earned Wall Street fantastic profits.

The American housing bubble of the 2000s caused the worst global financial crisis since the Great Depression. In this definitive account, Adam Levitin and Susan Wachter pinpoint its source: the shift in mortgage financing from securitization by Fannie Mae and Freddie Mac to “private-label securitization” by Wall Street banks. This change set off a race to the bottom in mortgage underwriting standards, as banks competed in laxity to gain market share.

The Great American Housing Bubble tells the story of the transformation of mortgage lending from a dysfunctional, local affair, featuring short-term, interest-only “bullet” loans, to a robust, national market based around the thirty-year fixed-rate mortgage, a uniquely American innovation that served as the foundation for the middle class.

Levitin and Wachter show how Fannie and Freddie’s market power kept risk in check until 2003, when mortgage financing shifted sharply to private-label securitization, as lenders looked for a way to sustain lending volume following an unprecedented refinancing wave. Private-label securitization brought a return of bullet loans, which had lower initial payments—enabling borrowers to borrow more—but much greater back-loaded risks. These loans produced a vast oversupply of underpriced mortgage finance that drove up home prices unsustainably. When the bubble burst, it set off a destructive downward spiral of home prices and foreclosures.

Levitin and Wachter propose a rebuild of the housing finance system that ensures the widespread availability of the thirty-year fixed-rate mortgage, while preventing underwriting competition and shifting risk away from the public to private investors.

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Growth and Distribution
Duncan K. Foley and Thomas R. Michl
Harvard University Press, 1999

Growth and Distribution is the first text designed to support a comprehensive advanced undergraduate or graduate course on the theory, measurement, and history of economic growth. The book, which presents Classical and Keynesian in parallel with Neoclassical approaches to growth theory, introduces students to advanced tools of intertemporal economic analysis through carefully developed treatments of land- and resource-limited growth, and covers money and growth, the impact of government debt and social security systems on growth, and theories of endogenous growth and endogenous technical change. The models emphasize rigorous reasoning from basic economic principles and insights without excessive formal complication, and respond to students' interest in the history and policy dilemmas of real-world economies. Surveys of data and discussion of empirical controversies are closely integrated with the development of theoretical tools. The book includes access to a comprehensive data set extending the Penn World Tables in a form suitable for exploration in hands-on student projects.

In addition to carefully worked examples showing how to use the analytical techniques presented, the book contains many problems suitable for inclusion in problem sets and examinations. Detailed answers to these problems are also provided.

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Growth and Distribution
Second Edition
Duncan K. Foley, Thomas R. Michl, and Daniele Tavani
Harvard University Press, 2019

A major revision of an established textbook on the theory, measurement, and history of economic growth, with new material on climate change, corporate capitalism, and innovation.

Authors Duncan Foley, Thomas Michl, and Daniele Tavani present Classical and Keynesian approaches to growth theory, in parallel with Neoclassical ones, and introduce students to advanced tools of intertemporal economic analysis through carefully developed treatments of land- and resource-limited growth. They cover corporate finance, the impact of government debt and social security systems, theories of endogenous technical change, and the implications of climate change. Without excessive formal complication, the models emphasize rigorous reasoning from basic economic principles and insights, and respond to students’ interest in the history and policy dilemmas of real-world economies.

In addition to carefully worked out examples showing how to use the analytical techniques presented, Growth and Distribution presents many problems suitable for inclusion in problem sets and examinations. Detailed answers to these problems are available. This second edition includes fresh data throughout and new chapters on climate change, corporate capitalism, models of wealth inequality, and technical change.

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High-Skilled Migration to the United States and Its Economic Consequences
Edited by Gordon H. Hanson, William R. Kerr, and Sarah Turner
University of Chicago Press, 2018
Immigration policy is one of the most contentious public policy issues in the United States today.  High-skilled immigrants represent an increasing share of the U.S. workforce, particularly in science and engineering fields. These immigrants affect economic growth, patterns of trade, education choices, and the earnings of workers with different types of skills. The chapters in this volume go beyond the traditional question of how the inflow of foreign workers affects native employment and earnings to explore effects on innovation and productivity, wage inequality across skill groups, the behavior of multinational firms, firm-level dynamics of entry and exit, and the nature of comparative advantage across countries.
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Housing and the Financial Crisis
Edited by Edward L. Glaeser and Todd Sinai
University of Chicago Press, 2013
Conventional wisdom held that housing prices couldn’t fall. But the spectacular boom and bust of the housing market during the first decade of the twenty-first century and millions of foreclosed homeowners have made it clear that housing is no different from any other asset in its ability to climb and crash.
           
Housing and the Financial Crisis looks at what happened to prices and construction both during and after the housing boom in different parts of the American housing market, accounting for why certain areas experienced less volatility than others. It then examines the causes of the boom and bust, including the availability of credit, the perceived risk reduction due to the securitization of mortgages, and the increase in lending from foreign sources. Finally, it examines a range of policies that might address some of the sources of recent instability.

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How Economics Shapes Science
Paula Stephan
Harvard University Press, 2015

The beauty of science may be pure and eternal, but the practice of science costs money. And scientists, being human, respond to incentives and costs, in money and glory. Choosing a research topic, deciding what papers to write and where to publish them, sticking with a familiar area or going into something new—the payoff may be tenure or a job at a highly ranked university or a prestigious award or a bump in salary. The risk may be not getting any of that.

At a time when science is seen as an engine of economic growth, Paula Stephan brings a keen understanding of the ongoing cost-benefit calculations made by individuals and institutions as they compete for resources and reputation. She shows how universities offload risks by increasing the percentage of non-tenure-track faculty, requiring tenured faculty to pay salaries from outside grants, and staffing labs with foreign workers on temporary visas. With funding tight, investigators pursue safe projects rather than less fundable ones with uncertain but potentially path-breaking outcomes. Career prospects in science are increasingly dismal for the young because of ever-lengthening apprenticeships, scarcity of permanent academic positions, and the difficulty of getting funded.

Vivid, thorough, and bold, How Economics Shapes Science highlights the growing gap between the haves and have-nots—especially the vast imbalance between the biomedical sciences and physics/engineering—and offers a persuasive vision of a more productive, more creative research system that would lead and benefit the world.

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How the Financial Crisis and Great Recession Affected Higher Education
Edited by Jeffrey R. Brown and Caroline M. Hoxby
University of Chicago Press, 2014
The recent financial crisis had a profound effect on both public and private universities, which faced shrinking endowments, declining charitable contributions, and reductions in government support. Universities responded to these stresses in different ways. This volume presents new evidence on the nature of these responses, and on how the incentives and constraints facing different institutions affected their behavior. 
           
The studies in this volume explore how various practices at institutions of higher education, such as the drawdown of endowment resources, the awarding of financial aid, and spending on research, responded to the financial crisis. The studies examine universities as economic organizations that operate in a complex institutional and financial environment. The authors examine the role of endowments in university finances and the interaction of spending policies, asset allocation strategies, and investment opportunities. They demonstrate that universities’ behavior can be modeled using economic principles.
[more]

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Immigration Economics
George J. Borjas
Harvard University Press, 2014

Millions of people—nearly 3 percent of the world’s population—no longer live in the country where they were born. Every day, migrants enter not only the United States but also developed countries without much of a history of immigration. Some of these nations have switched in a short span of time from being the source of immigrants to being a destination for them. International migration is today a central subject of research in modern labor economics, which seeks to put into perspective and explain this historic demographic transformation.

Immigration Economics synthesizes the theories, models, and econometric methods used to identify the causes and consequences of international labor flows. Economist George Borjas lays out with clarity and rigor a full spectrum of topics, including migrant worker selection and assimilation, the impact of immigration on labor markets and worker wages, and the economic benefits and losses that result from immigration.

Two important themes emerge: First, immigration has distributional consequences: some people gain, but some people lose. Second, immigrants are rational economic agents who attempt to do the best they can with the resources they have, and the same holds true for native workers of the countries that receive migrants. This straightforward behavioral proposition, Borjas argues, has crucial implications for how economists and policymakers should frame contemporary debates over immigration.

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Issues in the Economics of Immigration
Edited by George J. Borjas
University of Chicago Press, 2000
The United States is now admitting nearly one million legal immigrants per year, while the flow of illegal aliens into the country continues to increase steadily. The debate over immigration policy has typically focused on three fundamental questions: How do immigrants perform economically relative to others? What effects do immigrants have on the employment opportunities of other workers? What kind of immigration policy is most beneficial to the host country? This authoritative volume represents a move beyond purely descriptive assessments of labor market consequences toward a more fully developed analysis of economic impacts across the social spectrum. Exploring the broader repercussions of immigration on education, welfare, Social Security, and crime, as well as the labor market, these papers assess dimensions not yet taken into account by traditional cost-benefit calculations.

This collection offers new insights into the kinds of economic opportunities and outcomes that immigrant populations might expect for themselves and future generations.
[more]

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Job Loss, Identity, and Mental Health
Norris, Dawn R
Rutgers University Press, 2016
Our jobs are often a big part of our identities, and when we are fired, we can feel confused, hurt, and powerless—at sea in terms of who we are. Drawing on extensive, real-life interviews, Job Loss, Identity, and Mental Health shines a light on the experiences of unemployed, middle-class professional men and women, showing how job loss can affect both identity and mental health.
 
Sociologist Dawn R. Norris uses in-depth interviews to offer insight into the experience of losing a job—what it means for daily life, how the unemployed feel about it, and the process they go through as they try to deal with job loss and their new identities as unemployed people. Norris highlights several specific challenges to identity that can occur. For instance, the way other people interact with the unemployed either helps them feel sure about who they are, or leads them to question their identities. Another identity threat happens when the unemployed no longer feel they are the same person they used to be. Norris also examines the importance of the subjective meaning people give to statuses, along with the strong influence of society’s expectations. For example, men in Norris’s study often used the stereotype of the “male breadwinner” to define who they were. Job Loss, Identity, and Mental Health describes various strategies to cope with identity loss, including “shifting” away from a work-related identity and instead emphasizing a nonwork identity (such as “a parent”), or conversely “sustaining” a work-related identity even though he or she is actually unemployed. Finally, Norris explores the social factors—often out of the control of unemployed people—that make these strategies possible or impossible.
 
A compelling portrait of a little-studied aspect of the Great Recession, Job Loss, Identity, and Mental Health is filled with insight into the identity crises that unemployment can trigger, as well as strategies to help the unemployed maintain their mental strength.
 
[more]

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The Land of Too Much
American Abundance and the Paradox of Poverty
Monica Prasad
Harvard University Press, 2012

The Land of Too Much presents a simple but powerful hypothesis that addresses three questions: Why does the United States have more poverty than any other developed country? Why did it experience an attack on state intervention starting in the 1980s, known today as the neoliberal revolution? And why did it recently suffer the greatest economic meltdown in seventy-five years?

Although the United States is often considered a liberal, laissez-faire state, Monica Prasad marshals convincing evidence to the contrary. Indeed, she argues that a strong tradition of government intervention undermined the development of a European-style welfare state. The demand-side theory of comparative political economy she develops here explains how and why this happened. Her argument begins in the late nineteenth century, when America’s explosive economic growth overwhelmed world markets, causing price declines everywhere. While European countries adopted protectionist policies in response, in the United States lower prices spurred an agrarian movement that rearranged the political landscape. The federal government instituted progressive taxation and a series of strict financial regulations that ironically resulted in more freely available credit. As European countries developed growth models focused on investment and exports, the United States developed a growth model based on consumption.

These large-scale interventions led to economic growth that met citizen needs through private credit rather than through social welfare policies. Among the outcomes have been higher poverty, a backlash against taxation and regulation, and a housing bubble fueled by “mortgage Keynesianism.” This book will launch a thousand debates.

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Leveraged
The New Economics of Debt and Financial Fragility
Edited by Moritz Schularick
University of Chicago Press, 2022
An authoritative guide to the new economics of our crisis-filled century. Published in collaboration with the Institute for New Economic Thinking.

The 2008 financial crisis was a seismic event that laid bare how financial institutions’ instabilities can have devastating effects on societies and economies. COVID-19 brought similar financial devastation at the beginning of 2020 and once more massive interventions by central banks were needed to heed off the collapse of the financial system. All of which begs the question: why is our financial system so fragile and vulnerable that it needs government support so often? 

For a generation of economists who have risen to prominence since 2008, these events have defined not only how they view financial instability, but financial markets more broadly. Leveraged brings together these voices to take stock of what we have learned about the costs and causes of financial fragility and to offer a new canonical framework for understanding it. Their message: the origins of financial instability in modern economies run deeper than the technical debates around banking regulation, countercyclical capital buffers, or living wills for financial institutions. Leveraged offers a fundamentally new picture of how financial institutions and societies coexist, for better or worse.  

The essays here mark a new starting point for research in financial economics. As we muddle through the effects of a second financial crisis in this young century, Leveraged provides a road map and a research agenda for the future.
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Macroeconomics Beyond the NAIRU
Servaas Storm and C. W. M. Naastepad
Harvard University Press, 2011

Economists and the governments they advise have based their macroeconomic policies on the idea of a natural rate of unemployment. Government policy that pushes the rate below this point—about 6 percent—is apt to trigger an accelerating rate of inflation that is hard to reverse, or so the argument goes. In this book, Storm and Naastepad make a strong case that this concept is flawed: that a stable non-accelerating inflation rate of unemployment (NAIRU), independent of macroeconomic policy, does not exist. Consequently, government decisions based on the NAIRU are not only misguided but have huge and avoidable social costs, namely, high unemployment and sustained inequality.

Skillfully merging theoretical and empirical analysis, Storm and Naastepad show how the NAIRU’s neglect of labor’s impact on technological change and productivity growth eclipses the many positive contributions that labor and its regulation make to economic performance. When these positive effects are taken into account, the authors contend, a more humane policy becomes feasible, one that would enhance productivity and technological progress while maintaining profits, thus creating conditions for low unemployment and wider equality.

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Making Room
The Economics of Homelessness
Brendan O'Flaherty
Harvard University Press

Mentally ill people turned out of institutions, crack-cocaine use on the rise, more poverty, public housing a shambles: as attempts to explain homelessness multiply so do the homeless—and we still don’t know why. The first full-scale economic analysis of homelessness, Making Room provides answers quite unlike those offered so far by sociologists and pundits. It is a story about markets, not about the bad habits or pathology of individuals.

One perplexing fact is that, though homelessness in the past occurred during economic depressions, the current wave started in the 1980s, a time of relative prosperity. As Brendan O’Flaherty points out, this trend has been accompanied by others just as unexpected: rising rents for poor people and continued housing abandonment. These are among the many disconcerting facts that O’Flaherty collected and analyzed in order to account for the new homelessness. Focused on six cities (New York, Newark, Chicago, Toronto, London, and Hamburg), his studies also document the differing rates of homelessness in North America and Europe, and from one city to the next, as well as interesting changes in the composition of homeless populations. For the first time, too, a scholarly observer makes a useful distinction between the homeless people we encounter on the streets every day and those “officially” counted as homeless.

O’Flaherty shows that the conflicting observations begin to make sense when we see the new homelessness as a response to changes in the housing market, linked to a widening gap in the incomes of rich and poor. The resulting shrinkage in the size of the middle class has meant fewer hand-me-downs for the poor and higher rents for the low-quality housing that is available. O’Flaherty’s tightly argued theory, along with the wealth of new data he introduces, will put the study of homelessness on an entirely new plane. No future student or policymaker will be able to ignore the economic factors presented so convincingly in this plainspoken book.

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Men without Work
Post-Pandemic Edition (2022)
Eberstadt, Nicholas
Templeton Press, 2022
Nicholas Eberstadt’s landmark 2016 study, Men without Work, cast a spotlight on the collapse of work for men in modern America. Rosy reports of low unemployment rates and “full or near full employment” conditions, he contends, were overlooking a quiet, continuing crisis: Depression-era work rates for American men of “prime working age” (25–54).
   The grim truth: over six million prime-age men were neither working nor looking for work. Conventional unemployment measures ignored these labor force dropouts, but their ranks had been rising relentlessly for half a century. Eberstadt’s unflinching analysis was, in the words of The New York Times, “an unsettling portrait not just of male unemployment, but also of lives deeply alienated from civil society.”
   The famed American work ethic was once near universal: men of sound mind and body took pride in contributing to their communities and families. No longer, warned Eberstadt. And now—six years and one catastrophic pandemic later—the problem has not only worsened: it has seemingly been spreading among prime-age women and workers over fifty-five.
   In a brand new introduction, Eberstadt explains how the government’s response to Covid-19 inadvertently exacerbated the flight from work in America. From indiscriminate pandemic shutdowns to almost unconditional “unemployment” benefits, Americans were essentially paid not to work.
   Thus today, despite the vaccine rollouts, inexplicable numbers of working age men and women are sitting on the sidelines while over 11 million jobs go unfilled. Current low rates of unemployment, touted by pundits and politicians, are grievously misleading. The truth is that fewer prime-age American men are looking for readily available work than at any previous juncture in our history. And others may be catching the “Men Without Work” virus too.
   Given the devastating economic impact of the Covid calamity and the unforeseen aftershocks yet to come, this reissue of Eberstadt’s groundbreaking work is timelier than ever.
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The New Geography of Global Income Inequality
Glenn Firebaugh
Harvard University Press, 2006

The surprising finding of this book is that, contrary to conventional wisdom, global income inequality is decreasing. Critics of globalization and others maintain that the spread of consumer capitalism is dramatically polarizing the worldwide distribution of income. But as the demographer Glenn Firebaugh carefully shows, income inequality for the world peaked in the late twentieth century and is now heading downward because of declining income inequality across nations. Furthermore, as income inequality declines across nations, it is rising within nations (though not as rapidly as it is declining across nations). Firebaugh claims that this historic transition represents a new geography of global income inequality in the twenty-first century.

This book documents the new geography, describes its causes, and explains why other analysts have missed one of the defining features of our era—a transition in inequality that is reducing the importance of where a person is born in determining his or her future well-being.

[more]

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The Power of Creative Destruction
Economic Upheaval and the Wealth of Nations
Philippe Aghion, Céline Antonin, and Simon Bunel
Harvard University Press, 2021

Hayek Book Prize Finalist
An Economist Best Book of the Year
A Foreign Affairs Best Book of the Year


From one of the world’s leading economists and his coauthors, a cutting-edge analysis of what drives economic growth and a blueprint for prosperity under capitalism.

Crisis seems to follow crisis. Inequality is rising, growth is stagnant, the environment is suffering, and the COVID-19 pandemic has exposed every crack in the system. We hear more and more calls for radical change, even the overthrow of capitalism. But the answer to our problems is not revolution. The answer is to create a better capitalism by understanding and harnessing the power of creative destruction—innovation that disrupts, but that over the past two hundred years has also lifted societies to previously unimagined prosperity.

To explain, Philippe Aghion, Céline Antonin, and Simon Bunel draw on cutting-edge theory and evidence to examine today’s most fundamental economic questions, including the roots of growth and inequality, competition and globalization, the determinants of health and happiness, technological revolutions, secular stagnation, middle-income traps, climate change, and how to recover from economic shocks. They show that we owe our modern standard of living to innovations enabled by free-market capitalism. But we also need state intervention with the appropriate checks and balances to simultaneously foster ongoing economic creativity, manage the social disruption that innovation leaves in its wake, and ensure that yesterday’s superstar innovators don’t pull the ladder up after them to thwart tomorrow’s. A powerful and ambitious reappraisal of the foundations of economic success and a blueprint for change, The Power of Creative Destruction shows that a fair and prosperous future is ultimately ours to make.

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The Power of Creative Destruction
Economic Upheaval and the Wealth of Nations
Philippe Aghion, Céline Antonin, and Simon Bunel
Harvard University Press

Hayek Book Prize Finalist
An Economist Best Book of the Year
A Foreign Affairs Best Book of the Year
A Financial Times Summer Reading Favorite


“Sweeping, authoritative and—for the times—strikingly upbeat…The overall argument is compelling and…it carries a trace of Schumpeterian subversion.”
The Economist

“[An] important book…Lucid, empirically grounded, wide-ranging, and well-argued.”
—Martin Wolf, Financial Times

“Offers…much needed insight into the sources of economic growth and the kinds of policies that will promote it…All in Washington would do well to read this volume carefully.”
—Milton Ezrati, Forbes

Inequality is on the rise, growth stagnant, the environment in crisis. Covid seems to have exposed every crack in the system. We hear calls for radical change, but the answer is not to junk our economic system but to create a better form of capitalism.

An ambitious reappraisal of the foundations of economic success that shows a fair and prosperous future is ours to make, The Power of Creative Destruction draws on cutting-edge theory and hard evidence to examine today’s most fundamental economic questions: what powers growth, competition, globalization, and middle-income traps; the roots of inequality and climate change; the impact of technology; and how to recover from economic shocks. We owe our modern standard of living to innovations enabled by free-market capitalism, it argues, but we also need state intervention—with checks and balances—to foster economic creativity, manage social disruption, and ensure that yesterday’s superstar innovators don’t pull the ladder up after them.

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Prosperity without Greed
How to Save Ourselves from Capitalism
Sahra Wagenknecht
Campus Verlag, 2016
It is time to leave capitalism behind. In Prosperity without Greed, Sahra Wagenknecht shows that we live in a system of economic feudalism that has nothing to do with a free market economy, where the innovations we require to solve myriad important societal problems are not forthcoming. How can it be, Wagenknecht asks, that technological developments financed by the taxpayer end up enriching private companies even if those companies’ activities violate public interests? Through clear analysis and concrete proposals, Wagenknecht suggestss new forms of ownership and sketches the outlines of an innovative and just economy that instead promotes and rewards talent, real performance, and start-ups with groundbreaking ideas.
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Rethinking the Financial Crisis
Alan S. Blinder
Russell Sage Foundation, 2013
Some economic events are so major and unsettling that they “change everything.” Such is the case with the financial crisis that started in the summer of 2007 and is still a drag on the world economy. Yet enough time has now elapsed for economists to consider questions that run deeper than the usual focus on the immediate causes and consequences of the crisis. How have these stunning events changed our thinking about the role of the financial system in the economy, about the costs and benefits of financial innovation, about the efficiency of financial markets, and about the role the government should play in regulating finance? In Rethinking the Financial Crisis, some of the nation’s most renowned economists share their assessments of particular aspects of the crisis and reconsider the way we think about the financial system and its role in the economy. In its wide-ranging inquiry into the financial crash, Rethinking the Financial Crisis marshals an impressive collection of rigorous and yet empirically-relevant research that, in some respects, upsets the conventional wisdom about the crisis and also opens up new areas for exploration. Two separate chapters–by Burton G. Malkiel and by Hersh Shefrin and Meir Statman – debate whether the facts of the financial crisis upend the efficient market hypothesis and require a more behavioral account of financial market performance. To build a better bridge between the study of finance and the “real” economy of production and employment, Simon Gilchrist and Egan Zakrasjek take an innovative measure of financial stress and embed it in a model of the U.S. economy to assess how disruptions in financial markets affect economic activity—and how the Federal Reserve might do monetary policy better. The volume also examines the crucial role of financial innovation in the evolution of the pre-crash financial system. Thomas Philippon documents the huge increase in the size of the financial services industry relative to real GDP, and also the increasing cost per financial transaction. He suggests that the finance industry of 1900 was just as able to produce loans, bonds, and stocks as its modern counterpart—and it did so more cheaply. Robert Jarrow looks in detail at some of the major types of exotic securities developed by financial engineers, such as collateralized debt obligations and credit-default swaps, reaching judgments on which make the real economy more efficient and which do not. The volume’s final section turns explicitly to regulatory matters. Robert Litan discusses the political economy of financial regulation before and after the crisis. He reviews the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which he considers an imperfect but useful response to a major breakdown in market and regulatory discipline. At a time when the financial sector continues to be a source of considerable controversy, Rethinking the Financial Crisis addresses important questions about the complex workings of American finance and shows how the study of economics needs to change to deepen our understanding of the indispensable but risky role that the financial system plays in modern economies.
[more]

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The Return to Keynes
Bradley W. Bateman
Harvard University Press, 2010

Keynesian economics, which proposed that the government could use monetary and fiscal policy to help the economy avoid the extremes of recession and inflation, held sway for thirty years after World War II. However, it was discredited after the stagflation of the 1970s, which not only proved resistant to traditional Keynesian policies but was actually thought to be caused by them. By the 1990s, the anti-Keynesian counter-revolution seemed to reach its pinnacle with the award of several Nobel Prizes in economics to its architects at the University of Chicago.

However, with the collapse of the dot-com boom in 2000 and the attacks of 9/11 a year later, the nature of macroeconomic policy debate took a turn. The collapse prompted a major shift in macroeconomic policy, as the Bush administration and other governments around the world began to resort to Keynesian measures—both monetary and fiscal policies—to stabilize the economy. The Keynesian rebirth has been most dramatically illustrated during the past year when central banks have pumped billions of dollars of liquidity into the world’s financial system to address the crises of confidence, illiquidity, and insolvency that were triggered by the sub-prime lending crisis. The Return to Keynes puts Keynesian economics in a fresh perspective in order to assess this surprising new era in economic policy making.

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Revolution From Without
Yucatan, Mexico, and the United States, 1880–1924
Gilbert M. Joseph
Duke University Press, 1988
"In addition to the relevance provided by contemporary events, the republication of Revolution from Without comes at a particularly effervescent moment in Latin American revolutionary studies. An ongoing discourse among political sociologists, anthropologists and historians has greatly enriched our understanding of the political economy and social history of revolutions and popular insurgencies."—from the preface to the paperback edition
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front cover of The Rise and Fall of Neoliberal Capitalism
The Rise and Fall of Neoliberal Capitalism
David M. Kotz
Harvard University Press, 2014

The financial and economic collapse that began in the United States in 2008 and spread to the rest of the world continues to burden the global economy. David Kotz, who was one of the few academic economists to predict it, argues that the ongoing economic crisis is not simply the aftermath of financial panic and an unusually severe recession but instead is a structural crisis of neoliberal, or free-market, capitalism. Consequently, continuing stagnation cannot be resolved by policy measures alone. It requires major institutional restructuring.

Kotz analyzes the reasons for the rise of free-market ideas, policies, and institutions beginning around 1980. He shows how the neoliberal capitalism that resulted was able to produce a series of long although tepid economic expansions, punctuated by relatively brief recessions, as well as a low rate of inflation. This created the impression of a “Great Moderation.” However, the very same factors that promoted long expansions and low inflation—growing inequality, an increasingly risk-seeking financial sector, and a series of large asset bubbles—were not only objectionable in themselves but also put the economy on an unsustainable trajectory. Kotz interprets the current push for austerity as an attempt to deepen and preserve neoliberal capitalism. However, both economic theory and history suggest that neither austerity measures nor other policy adjustments can bring another period of stable economic expansion. Kotz considers several possible directions of economic restructuring, concluding that significant economic change is likely in the years ahead.

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The Rise and Fall of Neoliberal Capitalism
With a New Preface
David M. Kotz
Harvard University Press, 2017

The financial and economic collapse that began in the United States in 2008 and spread to the rest of the world continues to burden the global economy. David Kotz, who was one of the few academic economists to predict it, argues that the ongoing economic crisis is not simply the aftermath of financial panic and an unusually severe recession but instead is a structural crisis of neoliberal, or free-market, capitalism. Consequently, continuing stagnation cannot be resolved by policy measures alone. It requires major institutional restructuring.

“Kotz’s book will reward careful study by everyone interested in the question of
stages in the history of capitalism.”
—Edwin Dickens, Science & Society

“Whereas [others] suggest that the downfall of the postwar system in Europe and the United States is the result of the triumph of ideas, Kotz argues persuasively that it is actually the result of the exercise of power by those who benefit from the capitalist economic organization of society. The analysis and evidence he brings to bear in support of the role of power exercised by business and political leaders is a most valuable aspect of this book—one among many important contributions to our knowledge that makes it worthwhile.”
—Michael Meeropol, Challenge

[more]

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RSF
The Russell Sage Foundation Journal of the Social Sciences: Financial Reform: Preventing the Next Crisis
Michael S. Barr
Russell Sage Foundation, 2017
The 2008 financial crash and the ensuing Great Recession resulted from decades of unconstrained excess and failures of risk management on Wall Street and complacency in Washington. While the 2010 Dodd-Frank Act sought to curtail these abuses, more work remains to be done. This issue of RSF, edited by Michael S. Barr, sets out proposals for comprehensive financial reform. Contributors suggest how to improve financial regulation, make markets more resilient, and increase protections for consumers and investors in order to lower the likelihood of a future crisis.
 
Several contributors evaluate the Dodd-Frank bill which mandated greater federal oversight of banks, increased regulation of credit rating agencies, and established the Consumer Financial Protection Bureau (CFPB), among other measures. Martin Baily and coauthors conclude that measures that require greater transparency and oversight in derivatives transactions have made financial institutions more resilient. Yet, the bill’s attempts to consolidate the fragmented financial regulatory system have not gone far enough.
 
Lauren Willis argues that instead of simply issuing disclosures, financial service providers should be required to meet more rigorous performance standards, such as proving through third-party testing that customers understand their fees and surcharges.  John Macey advocates reforms that would afford home mortgage borrowers the same protections as investors in the securities market, including regulations that prevent brokers from encouraging borrowers to refinance their mortgages to collect fees.
 
The issue also addresses global financial regulation. Viral Achara examines the financial sectors in the U.S., Europe, and Asia, and assesses their vulnerability to capital shortfalls in the event of a future crisis. Niamh Moloney finds that institutions established in the wake of the crash, such as the European Supervisory Authorities, have improved European-level prudential and consumer financial regulations and have the potential to increase the EU’s influence in international financial governance.
 
The effects of the financial crisis continue to reverberate around the world today. Together, the articles in this issue document the steps necessary for creating a more robust financial system that works better for all consumers, investors and the financial system itself.
 
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Silent Looms
Women and Production in a Guatemalan Town
By Tracy Bachrach Ehlers
University of Texas Press, 2000

Based on new fieldwork in 1997, Tracy Bachrach Ehlers has updated her classic study of the effects of economic development on the women weavers of San Pedro Sacatepéquez. Revisiting many of the women she interviewed in the 1970s and 1980s and revising her earlier hopeful assessment of women's entrepreneurial opportunities, Ehlers convincingly demonstrates that development and commercial growth in the region have benefited men at the expense of women.

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The Sources of Economic Growth
Richard R. Nelson
Harvard University Press, 1996

Technological advance is the key driving force behind economic growth, argues Richard Nelson. Investments in physical and human capital contribute to growth largely as handmaidens to technological advance. Technological advance needs to be understood as an evolutionary process, depending much more on ex post selection and learning than on ex ante calculation. That is why it proceeds much more rapidly under conditions of competition than under monopoly or oligopoly.

Nelson also argues that an adequate theory of economic growth must incorporate institutional change explicitly. Drawing on a deep knowledge of economic and technological history as well as the tools of economic analysis, Nelson exposes the intimate connections among government policies, science-based universities, and the growth of technology. He compares national innovation systems, and explores both the rise of the United States as the world’s premier technological power during the first two-thirds of the twentieth century and the diminishing of that lead as other countries have largely caught up.

Lucid, wide-ranging, and accessible, the book examines the secrets of economic growth and why the U.S. economy has been anemic since the early 1970s.

[more]

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Speculative Communities
Living with Uncertainty in a Financialized World
Aris Komporozos-Athanasiou
University of Chicago Press, 2022
Speculative Communities investigates the financial world’s influence on the social imagination, unraveling its radical effects on our personal and political lives.

In Speculative Communities, Aris Komporozos-Athanasiou examines the ways that speculation has moved beyond financial markets to shape fundamental aspects of our social and political lives. As ordinary people make exceptional decisions, such as the American election of a populist demagogue or the British vote to leave the European Union, they are moving from time-honored and -tested practices of governance, toward the speculative promise of a new, more uncertain future. This book shows how even our methods of building community have shifted to the speculative realm as social media platforms enable and amplify our volatile wagers.

For Komporozos-Athanasiou, “to speculate” means increasingly “to connect,” to endorse the unknown pre-emptively, and often daringly, as a means of social survival. Grappling with the question of how more uncertainty can lead to its full-throated embrace rather than dissent, Speculative Communities shows how finance has become the model for society writ large. As Komporozos-Athanasiou argues, virtual marketplaces, new social media, and dating apps bring finance’s opaque infrastructures into the most intimate realms of our lives, leading to a new type of speculative imagination across economy, culture, and society.
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Trading Roles
Gender, Ethnicity, and the Urban Economy in Colonial Potosí
Jane E. Mangan
Duke University Press, 2005
Located in the heart of the Andes, Potosí was arguably the most important urban center in the Western Hemisphere during the colonial era. It was internationally famous for its abundant silver mines and regionally infamous for its labor draft. Set in this context of opulence and oppression associated with the silver trade, Trading Roles emphasizes daily life in the city’s streets, markets, and taverns. As Jane E. Mangan shows, food and drink transactions emerged as the most common site of interaction for Potosinos of different ethnic and class backgrounds. Within two decades of Potosí’s founding in the 1540s, the majority of the city’s inhabitants no longer produced food or alcohol for themselves; they purchased these items. Mangan presents a vibrant social history of colonial Potosí through an investigation of everyday commerce during the city’s economic heyday, between the discovery of silver in 1545 and the waning of production in the late seventeenth century.

Drawing on wills and dowries, judicial cases, town council records, and royal decrees, Mangan brings alive the bustle of trade in Potosí. She examines quotidian economic transactions in light of social custom, ethnicity, and gender, illuminating negotiations over vendor locations, kinship ties that sustained urban trade through the course of silver booms and busts, and credit practices that developed to mitigate the pressures of the market economy. Mangan argues that trade exchanges functioned as sites to negotiate identities within this colonial multiethnic society. Throughout the study, she demonstrates how women and indigenous peoples played essential roles in Potosí’s economy through the commercial transactions she describes so vividly.

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Uncertain Times
Kenneth Arrow and the Changing Economics of Health Care
Peter J. Hammer, Deborah Haas-Wilson, Mark A. Peterson, and William M. Sage, eds.
Duke University Press, 2003
This volume revisits the Nobel Prize-winning economist Kenneth Arrow’s classic 1963 essay “Uncertainty and the Welfare Economics of Medical Care” in light of the many changes in American health care since its publication. Arrow’s groundbreaking piece, reprinted in full here, argued that while medicine was subject to the same models of competition and profit maximization as other industries, concepts of trust and morals also played key roles in understanding medicine as an economic institution and in balancing the asymmetrical relationship between medical providers and their patients. His conclusions about the medical profession’s failures to “insure against uncertainties” helped initiate the reevaluation of insurance as a public and private good.

Coming from diverse backgrounds—economics, law, political science, and the health care industry itself—the contributors use Arrow’s article to address a range of present-day health-policy questions. They examine everything from health insurance and technological innovation to the roles of charity, nonprofit institutions, and self-regulation in addressing medical needs. The collection concludes with a new essay by Arrow, in which he reflects on the health care markets of the new millennium. At a time when medical costs continue to rise, the ranks of the uninsured grow, and uncertainty reigns even among those with health insurance, this volume looks back at a seminal work of scholarship to provide critical guidance for the years ahead.

Contributors
Linda H. Aiken
Kenneth J. Arrow
Gloria J. Bazzoli
M. Gregg Bloche
Lawrence Casalino
Michael Chernew
Richard A. Cooper
Victor R. Fuchs
Annetine C. Gelijns
Sherry A. Glied
Deborah Haas-Wilson
Mark A. Hall
Peter J. Hammer
Clark C. Havighurst
Peter D. Jacobson
Richard Kronick
Michael L. Millenson
Jack Needleman
Richard R. Nelson
Mark V. Pauly
Mark A. Peterson
Uwe E. Reinhardt
James C. Robinson
William M. Sage
J. B. Silvers
Frank A. Sloan
Joshua Graff Zivin

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front cover of World Inequality Report 2018
World Inequality Report 2018
Facundo Alvaredo
Harvard University Press, 2018

World Inequality Report 2018 is the most authoritative and up-to-date account of global trends in inequality. Researched, compiled, and written by a team of the world’s leading economists of inequality, it presents—with unrivaled clarity and depth—information and analysis that will be vital to policy makers and scholars everywhere.

Inequality has taken center stage in public debate as the wealthiest people in most parts of the world have seen their share of the economy soar relative to that of others, many of whom, especially in the West, have experienced stagnation. The resulting political and social pressures have posed harsh new challenges for governments and created a pressing demand for reliable data. The World Inequality Lab at the Paris School of Economics and the University of California, Berkeley, has answered this call by coordinating research into the latest trends in the accumulation and distribution of income and wealth on every continent. This inaugural report analyzes the Lab’s findings, which include data from major countries where information has traditionally been difficult to acquire, such as China, India, and Brazil. Among nations, inequality has been decreasing as traditionally poor countries’ economies have caught up with the West. The report shows, however, that inequality has been steadily deepening within almost every nation, though national trajectories vary, suggesting the importance of institutional and policy frameworks in shaping inequality.

World Inequality Report 2018 will be a key document for anyone concerned about one of the most imperative and contentious subjects in contemporary politics and economics.

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front cover of World Inequality Report 2022
World Inequality Report 2022
Lucas Chancel, Thomas Piketty, Emmanuel Saez, Gabriel Zucman
Harvard University Press, 2022

Produced by a team of world-leading economists, this is the benchmark account of recent and historical trends in inequality.

World Inequality Report 2022 is the most authoritative and comprehensive account available of global trends in inequality. Researched, compiled, and written by a team of world-leading economists, the report builds on the pioneering edition of 2018 to provide policy makers and scholars everywhere up-to-date information about an ever broader range of countries and about forms of inequality that researchers have previously ignored or found hard to trace.

Over the past decade, inequality has taken center stage in public debate as the wealthiest people in most parts of the world have seen their share of the economy soar relative to that of others. The resulting political and social pressures have posed harsh new challenges for governments and created a pressing demand for reliable data. The World Inequality Lab, housed at the Paris School of Economics and the University of California, Berkeley, has answered this call by coordinating research into the latest trends in the accumulation and distribution of income and wealth on every continent. This new report not only extends the lab’s international reach but provides crucial new information about the history of inequality, gender inequality, environmental inequalities, and trends in international tax reform and redistribution.

World Inequality Report 2022 will be a key document for anyone concerned about one of the most imperative and contentious subjects in contemporary politics and economics.

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front cover of A World of Insecurity
A World of Insecurity
Democratic Disenchantment in Rich and Poor Countries
Pranab Bardhan
Harvard University Press, 2022

An ambitious account of the corrosion of liberal democracy in rich and poor countries alike, arguing that antidemocratic sentiment reflects fear of material and cultural loss, not a critique of liberalism’s failure to deliver equality, and suggesting possible ways out.

The retreat of liberal democracy in the twenty-first century has been impossible to ignore. From Wisconsin to Warsaw, Budapest to Bangalore, the public is turning against pluralism and liberal institutions and instead professing unapologetic nationalism and majoritarianism. Critics of inequality argue that this is a predictable response to failures of capitalism and liberalism, but Pranab Bardhan, a development economist, sees things differently. The problem is not inequality but insecurity—financial and cultural.

Bardhan notes that antidemocratic movements have taken root globally in a wide range of demographic and socioeconomic groups. In the United States, older, less-educated, rural populations have withdrawn from democracy. But in India, the prevailing Hindu Nationalists enjoy the support of educated, aspirational urban youth. And in Europe, antidemocratic populists firmly back the welfare state (but for nonimmigrants). What is consistent among antidemocrats is fear of losing what they have. That could be money but is most often national pride and culture and the comfort of tradition.

A World of Insecurity argues for context-sensitive responses. Some, like universal basic income schemes, are better suited to poor countries. Others, like worker empowerment and international coordination, have broader appeal. But improving material security won’t be enough to sustain democracy. Nor, Bardhan writes, should we be tempted by the ultimately hollow lure of China’s authoritarian model. He urges liberals to adopt at least a grudging respect for fellow citizens’ local attachments. By affirming civic forms of community pride, we might hope to temper cultural anxieties before they become pathological.

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