John Kenneth Galbraith and the Future of Economics

260 Pages·2005·0.891 MB·English

by  Blandine Laperche, Dimitri Uzunidis (eds.)

John Kenneth Galbraith
and the Future of
Economics
Edited by
Blandine Laperche and Dimitri Uzunidis
John Kenneth Galbraith and the Future of Economics
Also by Blandine Laperche
LA FIRME ET L’INFORMATION, INNOVER POUR CONQUÉRIR
L’INNOVATION ORCHESTRÉE (Edited)
PROPRIÉTÉ INDUSTRIELLE ET INNOVATION (Edited)
Also by Dimitri Uzunidis
COMMENT ONT-ILS RÉUSSI? L’HISTOIRE DES ENTREPRENEURS DU XVIIIE SIÈCLE
À NOS JOURS (with S. Boutillier)
LA LÉGENDE DE L’ENTREPRENEUR (with S. Boutillier)
LE TRAVAIL BRADÉ, AUTOMATISATION, MONDIALISATION, FLEXIBILITÉ (with
S. Boutillier)
L’INNOVATION ET L’ÉCONOMIE CONTEMPORAINE: Espaces Cognitifs et
Territoriaux (Edited)
MONDIALISATION ET CITOYENNETÉ (Edited with J.- P. Michels)
John Kenneth Galbraith
and the Future of
Economics
Edited by
Blandine Laperche
and
Dimitri Uzunidis
Selection and editorial matter © Blandine Laperche and Dimitri Uzunidis 2005
Individual chapters © Contributors 2005
Softcover reprint of the hardcover 1st edition 2005 978-1-4039-9616-9
All rights reserved.No reproduction,copy or transmission of this
publication may be made without written permission.
No paragraph of this publication may be reproduced,copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright,Designs and Patents Act 1988,or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,90
Tottenham Court Road,London W1T 4LP.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified
as the authors of this work in accordance with the Copyright,
Designs and Patents Act 1988.
First published in 2005 by
PALGRAVE MACMILLAN
Houndmills,Basingstoke,Hampshire RG21 6XS and
175 Fifth Avenue,New York,N.Y.10010
Companies and representatives throughout the world.
PALGRAVE MACMILLAN is the global academic imprint of the Palgrave
Macmillan division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd.
Macmillan® is a registered trademark in the United States,United Kingdom
and other countries.Palgrave is a registered trademark in the European
Union and other countries.
ISBN 978-1-349-54517-9 ISBN 978-0-230-52370-8 (eBook)
DOI 10.1057/9780230523708
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources.
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
John Kenneth Galbraith and the future of economics / edited by Blandine
Laperche and Dimitri Uzunidis.
p.cm.
“Papers from the International Symposium honoring John Kenneth Galbraith
held in Paris in September 2004”—Pref.
Includes bibliographical references and index.
1.Galbraith,John Kenneth,1908– 2.Economists – United States.
3.Economics.I.Galbraith,John Kenneth,1908– II.Laperche,Blandine.
III.Uzunidis,Dimitri.
HB119.G33J64 2005
330(cid:2).092—dc22 2005048689
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10 09 08 07 06 05
Contents
List of Figures vii
List of Tables viii
Acknowledgements ix
List of Contributors x
Preface by James K. Galbraith xi
Introduction 1
Blandine Laperche and Dimitri Uzunidis
Part I Back to John Kenneth Galbraith
1. Galbraith: a Partisan Appraisal 15
James K. Galbraith
2. Where Do Galbraith’s Ideas Come From? 25
Richard Parker
3. Galbraith and the Post Keynesians 34
Paul Davidson
4. J.K. Galbraith: Economist of the Peace 40
Jacques Fontanel and Fanny Coulomb
5. John Kenneth Galbraith and the Uncompleted Task of Progress 52
Norman Birnbaum
Part II The Trouble with Economists and Policies
6. The Bias in Academic Economics: the Economics Salon 65
Jeff Madrick
7. Reframing Capitalism 77
James E. Sawyer
8. Power and Institutions in Macroeconomic Theory 87
John Cornwall and Wendy Cornwall
9. Reinventing Fiscal Policy 105
Philip Arestis and Malcolm Sawyer
10. Alternatives for the Policy Framework of the Euro 126
Philip Arestis and Malcolm Sawyer
11. Promoting Growth and Welfare in a Changing Europe:
Economic Analysis and Policy 142
Jean-Luc Gaffard
v
vi Contents
Part III Economies in a Global Context: a Programme
of Action
12. The Future of the International Financial System 165
Paul Davidson
13. John Kenneth Galbraith and the Anatomy of Russian Capitalism 180
Stanislav Menshikov
14. Escaping the Squeeze: Lessons from East Asia on how
Middle-income Countries can Grow Faster 196
Robert Hunter Wade
15. The Third World’s Debt Problem 214
Kunibert Raffer
16. Global Organization and Developing Countries: Current Aspects
of Neo-mercantilism and the Global Framework of Accumulation 230
Dimitri Uzunidis
Index 241
List of Figures
8.1 Optimizing political preferences 96
8.2 Alternative political preferences 97
vii
List of Tables
8.1 Annual average standardized unemployment rates and
rates of consumer price inflation for 18 OECD countries 89
8.2 Average days lost to strikes, per thousand workers, 1960–89 94
8.3 Definitions of the variables used in the unemployment
equation 99
8.4 Regression results for the reduced form unemployment
equation 100
10.1 Recent macroeconomic data for the eurozone 127
13.1 Dynamic proportions of Russian and US economies 188
13.2 Macroeconomic proportions in the US, 1929–99 193
14.1 Trade regimes, incentives to sell on domestic market or
to sell abroad, developing countries around 1969 201
16.1 Share of manufacturing production in GDP per region,
1960–2000 237
16.2 Patterns of development 239
viii
Acknowledgements
There are many people and institutions we would like to thank for their
input into making this book possible. The IGS Group (Institut de Gestion
Sociale) in Paris was the co-organizer with the Industry and Innovation
Research Unit, University of Littoral Côte d’Opale (Lab.RII), of the first
Forum The Spirit of Innovation, International Symposium John Kenneth
Galbraith, in September 2004. The papers included in this volume were
all presented at the conference. Our first thanks go to Roger Serre, head of
the IGS Group and all the staff who took part in the organization of this
conference. We are most particularly grateful to Yves Enrègle, Claude Treyer,
Christine Lancesseur, Michèle Crost, François Diquero and Claire Jeuffrain.
We extend our thanks to Jarlath Dillon, head of the IGS international MBA
and his students for the compilation of the debates during the International
Symposium John Kenneth Galbraith.
Many institutions supported the organization of this event and the publi-
cation of this volume. We would like especially to thank the French Ministry
of Education and Research, the National Centre for Scientific Research
(CNRS), The Embassy of the United States in Paris, the French Senate, the
French National Institute on Industrial Property (INPI), the French Region
Nord/Pas-de-Calais Council and the University of Littoral Côte d’Opale.
We offer our deep appreciation to all the members of the scientific com-
mittee of this symposium, for their help in the selection of papers, in the
construction and in the publication of this book. We especially thank Philip
Arestis (University of Cambridge) for his help with the publication of this
book. We also express our thanks to James K. Galbraith who, from the very
beginning of this project offered time, advice and help to make this event
and this book possible. We also thank our colleagues of Lab.RII–ULCO, for
their precious help, especially Sophie Boutillier and Clotaire Moulougui who
gave us advice on the structure of the book and Jean-Claude Raibaut, who
read and made important corrections on the manuscript.
And finally, we warmly thank John Kenneth Galbraith who, all along the
preparation of this book, gave us his moral and intellectual support.
ix