December 23, 2013 at 3:30pm
It is terrific to contemplate the abysmal gulf of incomprehension that has opened itself between us and the classical economists. Only one century separates us from them: … I say a century; but even a century after, in 1870, they did not understand it… . The classical economists said things which were perfectly true, even according to our standards of truth: they expressed them very clearly, in terse and unambiguous language, as is proved by the fact that they perfectly understood each other. We don’t understand a word of what they said: has their language been lost? Obviously not, as the English of Adam Smith is what people talk today in this country. What has happened then?
Piero Sraffa, 1927
Washington Sq on a hot summer day
Freez/Best ice-cream in Lewisburg
And you ask if economics has gone down the toilet!
I don’t normally post on weekends, but there’s a fascinating discussion going on right now on econjobrumors about the Cambridge Capital Controversy.
It really picks up at around page 4.
RWE stands for Real Wicksell Effects, PWE stands for Price Wicksell Effects.
Today In Latin American History
Ecuadorian artist Oswaldo Guayasamín died in Baltimore, Maryland on March 10, 1999 at the age of 78.
Bob Marley visited Brazil in March of 1980, a year before his death. Here he is playing soccer with a group of Jamaican and Brazilian musicians, including Brazilian artists Chico Buarque and Toquinho.
Heterodox economics is often defined as potpourri of schools, too many to mention. Further, most of these heterodox schools are defined against marginalism (or neoclassical economics, which is also a fragmented school of economic thought). In this sense, the heterodox camp is defined in a negative (against orthodox) and fragmented (depending on what aspect of orthodoxy is contested) way. I think that is a counter productive approach, and that heterodoxy should be seen as a set of principles. A positive (in its own terms) and unified (in the sense of the minimum set of propositions that are universally accepted) definition of heterodoxy is necessary.
The core beliefs of heterodox economics the essay outlines are as follows:
- Distribution of surplus is determined exogenously
- Prices do not reflect relative scarcities
- Output and employment are demand determined in the long run
In a nutshell:
In sum, if one believes that prices reflect, for a given technology, the way classes struggle for higher income shares within the process of reproducing the material conditions for survival (including processes in which there is accumulation), and one believes that output and the process of accumulation are driven by the exogenous forces of demand, one may be called heterodox.
Full link here http://nakedkeynesianism.blogspot.com/2011/05/meaning-of-heterodox-economics-and-why.html