1st Edition

Classical Economics, Keynes and Money

    348 Pages 21 B/W Illustrations
    by Routledge

    348 Pages 21 B/W Illustrations
    by Routledge

    Classical Economics, Keynes and Money casts new light on an approach to economic theory and policy that combines the modern classical theory of prices and income distribution with a Keynesian analysis of money and finance. Structured in four parts, the work considers issues within classical economics, monetary economics, Keynesian and post-Keynesian Economics, rationality and economic methodology. These themes are all central to the work of Carlo Panico, and the chapters both reflect on and build on his key contributions to the field. This collection is of interest to advanced students and researchers in the history of economic thought, monetary theory, financial economics and heterodox economics.

    1 Introduction

    John Eatwell, Pasquale Commendatore, and Neri Salvadori

    2 Asking the right questions


    PART I Classical theory of value and distribution

    3 On physical real cost, labour and metaphysics: Sraffa on alternative theories of value and distribution and on Pareto’s distinction between ‘literary’ and ‘mathematical economists’

    Heinz D. Kurz

    4 Sraffa and the problem of returns: A view from the Sraffa archive

    Neri Salvadori and Rodolfo Signorino

    5 Class struggle and hired prize-fighters: A Marx-inspired perspective on the present state of economic theory and its social causes

    Fabio Petri

    6 On the productiveness of welfare expenditures

    Cosimo Perrotta

    7 Is Ricardian intensive rent a Nash equilibrium?

    Giuseppe Freni and Neri Salvadori

    8 Organisations and institutions in Sraffa’s thinking

    Giuseppe Mastromatteo and Giovanni B. Pittaluga

    PART II Keynesian and Post-Keynesian theories of growth and distribution

    9 Key elements of post-Keynesian economics

    Geoff C. Harcourt and Peter Kriesler

    10 Classical theories of wages and heterodox models of distribution

    Amitava Krishna Dutt

    11 On changes and differences: Joan Robinson vs Sraffa

    Maria Cristina Marcuzzo

    12 Behavioural changes and distribution effects in a Pasinetti-Solow model

    Pasquale Commendatore, Ingrid Kubin, and Iryna Sushko

    PART III Monetary and fiscal policies and the role of institutions

    13 The underground economy and the financial market: A two-sided relationship

    Salvatore Capasso and Salvatore Ciucci

    14 Latin America’s macroeconomic policies and growth: An uncoordinated dance

    Juan Carlo Moreno Brid, Esteban Pérez Caldentey, and Santiago Capraro Rodríguez

    15 Elections and government deficit spending: Evidence from Italian regions

    Michele Limosani, Emanuele Millemaci, and Fabio Monteforte

    16 Monetary policy and national fiscal policies in the euro area

    Erasmo Papagni and Francesco Purificato

    17 Monetary policy and financial stability in the Economic and Monetary Union

    Francesco Purificato and Elvira Sapienza

    PART IV The problem of rationality in economics

    18 Economics situational rationality

    Celia Lessa Kerstenetzky

    19 Rationality, uncertainty and ecological adaptation

    Valerio Filoso


    John Eatwell is Honorary Fellow of Queens’ College, Cambridge; Member of House of Lords of the United Kingdom; and Foreign Fellow of Accademia Nazionale dei Lincei, Italy, and was President of Queens’ College, Cambridge. Pasquale Commendatore is Professor of Economics at the University of Naples Federico II, Italy. Neri Salvadori was Professor of Economics at University of Pisa, Italy, and is Corresponding Fellow of Accademia Nazionale dei Lincei, Italy.