Questions tagged [political-economy]

a term used for studying production and trade, and their relations with law, custom, and government, as well as with the distribution of national income and wealth.

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239 views

Printing money to put into a Superannuation or UBI fund

It is fiscal policy to keep inflation at between 1-2% (in New Zealand at least) Various tools are used to keep inflation in this range. Let's say the average inflation rate is 1.25% What would ...
3 votes
1 answer
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Why does the voter paradox entail 0 turnout?

The decision to cast a vote (under a simplistic FPTP two-candidate model), as formalised by Downs can be written as follows: $pB \geq C$ where $p$ is the probability of you changing the outcome, $B$ ...
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Does it make sense to evaluate a country's debt in GDP based on PPP?

Consider a fictional country Gudzan-Tservijstan with a GDP of \$100bn USD, a total (public and private) debt of \$100bn USD, and a PPP conversion factor of 2. Are there advantages to considering the ...
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How 19th century luddites differ from today's political luddism that tries to bound AI?

There are ongoing preparations for the AI regulation summits https://www.politico.eu/article/eu-us-uk-china-artificial-intelligence-control/ that are planned to be held by G7 AI control group and ...
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Is non-monetary economy formally possible?

As an outsider I have a few questions non-monetary economy. Is it principally and theoretically possible to remove money from economy? If so does that help with stopping economical inequality, where ...
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If Milei is able to apply his economic plan during the next decade, what are the chances of Argentina becoming (once again) a major economy?

Once Argentina was one of the strongest economies in South America. It is pretty clear that the economic model that made Argentina successful then does not stand a big chance to work again. Javier ...
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1 answer
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Is there a name for adjusting bad regulation until its negative impact is no longer detectable?

Taking (a highly simplified view of) Minimum Wage as an example: A standard "pro" argument is that an effective Minimum Wage increase improves the standard of living of the lowest-wage ...
4 votes
2 answers
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Market failure in the provision of facilities for people with disabilities

In the US, I believe it is a statutory requirement that all places are accessible for people with disabilities. However, if it were not for this statutory requirement, I would imagine that accessible ...
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1 answer
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Clarification on GDP comparisons

I am not an economist, and I hope my question isn't inappropriate. I have seen various posts on social media spreading the news that the BRICS bloc surpassed the G7 in terms of PPP-adjusted GDP. ...
2 votes
2 answers
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In what ways will taxing corporations reduce inflation?

President Biden Tweeted to the effect that taxing corporations will reduce inflation. When I look at what goods are experiencing the most inflation it seems to be things like groceries and rent. What ...
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1 answer
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How Does Economics Address Society's Major Existential Threats?

Given our societal emphasis on the pace of 'progress', often overlooking its direction, we face a multitude of existential challenges [1]. These range from the looming threat of nuclear warfare and ...
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What cause the capital-output ratio to be low in developing countries?

I'm now studying economic development and I wonder what is the causes of low ICOR in developing countries and high ICOR in advanced countries. Because it's about economic development so I need some ...
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1 answer
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Is John Maynard Keynes an economic liberal or an economic nationalist?

I am working on a research project about political economy. However, I stumbled upon differences in the interpretation of the orientation of John Maynard Keynes. Some sources indicate that Keynes is a ...
13 votes
8 answers
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Understanding the "But they will lose jobs!" argument

Suppose there is some industry whose profit is based on unethical business practices. Eg: A pest control company X, who themselves send pests into people's houses, so as to later earn money from ...
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1 answer
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Who controls banks in Diamond's model?

In Diamond's model banks are delegated to monitor borrowers for the investors, in this case, who monitors the banks?
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1 answer
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Why does Game Theory seem to ignore the impact that collectively altering a player's possible strategies can have on their utility?

A recurring theme I've noticed in Game Theory is the tendency to dish out ideas for collective action, with the stated goal of tipping or forcing society toward a strategy vector with better (perhaps ...
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"Technological breakthrough changes social-economic relations" - how this Marxian thesis is perceived in orthodox economy and political economy?

This article https://ojs.library.ubc.ca/index.php/newproposals/article/view/2017 from Neo-Marxian peer-reviewed journal applies the Marxian thesis "technological breakthrough changes social-...
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How will more stimulus checks in California affect inflation?

So we're getting more money here in California. I thought the consensus at this point was that we probably overstimulated the economy. What gives? What was the reasoning economic advisors had for ...
4 votes
2 answers
95 views

Any good resources on Information Economics Theory?

I am coming from a political economy/public choice perspective, trying to explore some ideas in signaling, especially the supply-side analysis of information transmission by the media/news. Although I ...
0 votes
1 answer
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(Game Theory) Why is voting for your worst alternative a weakly dominated action?

I don't fully understand why voting for your worst alternative is a weakly dominated action. The question comes from a question I'm working on: "Assume there are three candidates, A,B and C,...
6 votes
1 answer
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What are the reasons for Russian Ruble to strengthen in the past few days?

1 USD was about 75 Russian Rubles before the war in Ukraine began. After the sanctions, Russian Ruble quickly declined and 1 USD skyrocketed to 139 Rubles. Now it is back to around 85. What are the ...
6 votes
3 answers
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Why land supply is inelastic?

I am reading about Georgism, and I am puzzled by the notion that the land supply is inelastic. I posted a question in the reddit of georgism, but that left me more confused than before. It seems that ...
8 votes
4 answers
4k views

Are state owned enterprises really inefficient?

The typical right wing/free market argument, that leads to privatisation of government assets is that the government assets will be far more efficiently managed when in the hands of profit seeking ...
1 vote
1 answer
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Which industries are widely agreed upon to require central regulation on a national basis, regardless of economic or political system?

For example, the most straightforward cases of widely accepted centrally controlled regulation on a national basis would be the nuclear power generation and nuclear fuel supply industries. Where every ...
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0 answers
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best examples of helicopter money in response to the COVID-19 pandemic

A quote from "The Optimum Quantity of Money", a Milton Friedman paper of 1969... Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in ...
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1 answer
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Is possible implement a thrid-way economy without undesired side effects, that persists in time? (Under the Austrian School of Economy) [closed]

The questions is very much in the title, but some clarification are necessary For the porpourse of this question the term third-way economy will be defined as a economic system that tries to have ...
5 votes
1 answer
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Criticism of "Modern Political Economics" by Varoufakis, Halevi, Theocarakis

The book "Modern Political Economics" is quite critical about "neoclassical economics", the basic claim being, if I understand correctly, that the models which "neoclassical economics" (armed with ...
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Have there been more US CDS curve inversions since 2011, and do these correlate with (political) disputes around the debt ceiling?

Gori proposes a model of the 2011 US debt ceiling crisis in which the spread (and ultimately inversion) of the US government credit default swaps (1Y/2Y vs 5Y) is used as a proxy measure for the ...
4 votes
3 answers
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Why is Mises "permitted" to define "Economics is an a priori science", if a priori is not trustworthy?

Why is Mises "permitted" to define "Economics is an a priori science", if a priori is not trustworthy? In philosophy of science and natural sciences a priori as a method of knowing ...
5 votes
3 answers
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Is climate change an economic question?

The assumption that the Keeling Curve can be approximated with a function $$k=A+B\cdot e^{\alpha t}$$ leads to a solution with $A=258.6$, $B=4,243\cdot 10^{-13}$ and $\alpha=0.0166$ with a high ...
2 votes
1 answer
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Is Iranian rial going to get boosted?

I was reading about the Iran's economy and Iranian rial. I have read the news regarding the lift of sanctions from Ira, which had allowed the purchase of Iranian rial in America. I was having query ...
16 votes
1 answer
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Are democracies more economically productive than autocracies?

The book The Dictator's Handbook claims in several places that democracies are more productive than autocracies. It's central to their argument of lower taxation rate in democracies giving more wealth ...
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1 answer
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Will economic discrepancy between democratic and authoritarian states decrease over time? [closed]

The most popular explanation for the economic discrepancy between different states is that in the authoritarian states the leaders need corrupt extractive institution to preserve their power. However, ...
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1 answer
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Is there contradiction between automation created resilience and the full employment (with high wages)?

From the one side - full employment with the high wages (but still under the level of creating inflation threat) is nice thing and politicians and central banks are highly motivated to achieve this. ...
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1 answer
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How does foreign trade work in a planned economy?

I know that in a planned economy all economic processes are ruled by the state and that there are disadvantages such as too much bureaucracy and that sometimes deals are not always met with demand... ...
1 vote
2 answers
172 views

Political theories of inflation

A recent op-ed (paywall) in the Financial Times about inflation stated that (emphasis mine): Across the developed economies, the Phillips curve has gone ignominiously flat. The world's leading ...
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4 answers
432 views

Does fiat currency disprove labor theory?

From what I understand. LTV predicts that fiat currency, which requires zero labor to produce, should have zero value. Empirically, fiat currency does not have zero value. Would this prove that the ...
2 votes
1 answer
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How did Pareto came up with Pareto Distribution of wealth law?

I am not an economist but a mathematics student. I heard about the Pareto law - the mathematical modelling of the distribution of wealth, how did Pareto come up with this law? technically speaking ...
1 vote
1 answer
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Can machines create value?

Marx wrote that only humans can create value. But why is that so? Ok humans can, with their work, create more value than they need to consume in food and so on, that's obvious. But why is this so ...
2 votes
0 answers
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Which metrics best characterise 'socialist' and 'capitalist' economies?

I am interested in finding some metrics that capture how 'socialist' or 'capitalist' a country was throughout modern history, and to include these alongside those in the gapminder dataset, to explore ...
3 votes
1 answer
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How long into the past can we trace the effect of institutions?

In one of my courses we recently went through several institutional economic papers (The colonial origins of comparative development, The Slave Trade and the Origins of Mistrust in Africa, The Long-...
4 votes
1 answer
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Is Keynesian economic theory still considered capitalism?

When we compare neoclassical economic theory with Keynesian economic theory as they pertain to capitalism, do they both fall within the spectrum of capitalism? or is Keynes's idea of state ...
2 votes
1 answer
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What does 'Health spending as a share of GDP' mean?

I am watching a video essay talking about healthcare spending in different countries and one of the first graphs shown was titled: 'Health spending as a share of GDP'. After doing some reading, I ...
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1 answer
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Universal basic loan

I'm looking for feedback and critiques of an idea. Universal basic income is an increasingly popular idea, but most agree that it would be terrifically expensive. Assuming that the goal of UBI is to ...
1 vote
1 answer
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What was the Summers memo of 1991 sarcastic about?

I have read a twitter thread about Summers memo (wikipedia article) today, and trying to understand the last part (bolded). The problem with the arguments against all of these proposals for more ...
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1 answer
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How will the UK's economy be affected, if it will be a hard Brexit?

Will the outcome of Brexit have any positive impact on the UK market? Are there any available studies on this topic?
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Interventions during the current Corona crisis: Government credits

In the light of the current public health crisis caused by COVID-19, I would like to know more about how government or central bank interventions are supposed to influence and limit the economic ...
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2 answers
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What would happen to US economy before US government lose control over its national debt?

From this wiki page we can clearly see that US national debt is growing steadily after 2010 and now it's larger than US GDP already (at the end of 2019). Still it's commonly believed the debt is ...
0 votes
1 answer
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Country specific economic recession/financial crisis data?

Many financial crises are at the global level, yet some of them can be country-specific, especially the ones connected with political instability. For example, the 1990 recession of Russia, the 1958 ...
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Yang's Impact on Algorithmic Trading?

Presidential candidate Andrew Yang has published the following policy proposals on his website: 1. FINANCIAL TRANSACTION TAX Financial markets have grown dramatically over the past decades. ...