This volume brings together papers inspired by the work of Duncan Foley, an extraordinarily productive economist who has made seminal contributions to a wide variety of areas. Foley’s work cannot be easily classified, but one thread that runs through it is a critical examination (along both ethical and analytical lines) of conventional neoclassical economic theory, particularly involving general equilibrium theories of value and money. Foley was a pioneer of complexity economics as well, which adopts approaches to these questions drawn from natural sciences, so the collection therefore has an interdisciplinary quality that will interest a wide variety of readers.
Some of the chapters are intellectual biographies that contextualize and identify Foley’s contributions to Keynesian macroeconomics, Marxian value theory, and complexity theory in economics. The topics covered include the economics of complexity; the ethics of general equilibrium theory; the economics of climate change; applications of Keynesian, Marxian and Ricardian political economy; and money and financial crises.
The collection should be useful to scholars who work in various economic traditions critical of the currently dominant free-market approach, but it also speaks to scholars of critical theory in various disciplines beyond economics such as the mathematicians, physicists, and other natural scientists who are interested in understanding the complexity of social processes using their analytical frameworks. This book should also appeal to graduate students in economics who are working in these traditions, as well as scholars (including current graduate students in orthodox programs) who are dissatisfied with the current state of economic theory and would like to satisfy their intellectual curiosity by sampling the contributions of critical theorists.
Table of Contents
Introduction Lance Taylor, Armon Rezai and Thomas Michl Personal Remarks: Festschrift Conference, April 21, 2012 Duncan Foley Part I: Socio-Economic Ideology and Methodology 1. Keynes and Marx, Duncan and Me Michael Piore 2. The Sophisticated Legislator and Adam's Fallacy Samuel Bowles 3. The Role of Duncan Foley in the Emergence of the Complexity Concept in Economics J. Barkley Rosser, Jr. 4. Statistical Mechanics Approach to the Probability Distributions of Money, Wealth, Income, and Energy Consumption Victor Yakovenko Part II: Neoclassical Economics: Dispersed and Decentralized Exchange 5. Production Decentralized by Decentralized Exchange A. J. Julius 6. Positional Goods, Climate Change, and the Social Returns to Investment Leila Davis and Peter Skott 7. Markets with Black Swans Graciela Chichilnisky 8. Equilibrium versus Market Efficiency Joseph McCauley 9. Foley's Thesis, Negishi’s Method, Existence Proofs and Computation K. Vela Velupillai Part III: Classical Political Economy: Growth and Distribution 10. Applying the Labour Theory of Value 1964-2009 Simon Mohun 11. The Sources of Profitability Peter Flaschel, Nils Fröhlich and Roberto Veneziani 12. On the "Vexata Questio of Value": Ricardo, Marx and Sraffa Heinz Kurz and Neri Salvadori 13. Duncan Foley’s Circuit of Capital Model for an Open Economy Martín Abeles 14. Production, Circuits of Capital, and Flows and Stocks in National Accounts Anwar Shaikh 15. Endogenous Technological Change in Classical-Marxian Models of Growth and Distribution Amitava Krishna Dutt 16. Macroeconomics of Keynesian and Marxian Inspirations: Toward a synthesis Gérard Duménil and Dominique Lévy 17. A Model of Fiscal and Monetary Policy Thomas Michl 18. Consequences of Downsizing in U.S. Manufacturing, 1967 to 1997 Edward Wolff Part IV: Complexity: Barriers and Bounds to Rationality 19. Market Ecology and the Economics of Crisis Rajiv Sethi 20. Market Complexity and the Nature of Crises in Financial Markets Philip Mirowski 21. The Inherent Hierarchy of Money Perry Mehrling
Lance Taylor is Arnhold Professor Emeritus of International Cooperation and Development at the New School University, New York, USA
Armon Rezai is Assistant Professor in Environmental Economics at the Vienna University of Economics and Business, Austria
Thomas Michl is Professor of Economics at Colgate University, Hamilton, USA