Economics and politics - comment and analysis

How it was possible for Trump to win the presidency. Trade and war casualties

In 2016, Flassbeck-economics provided extensive comment and analysis of the caucuses, the primaries and the ultimate presidential election in the USA. Afterwards, I wrote up a long piece trying to explain Trump’s victory. I pointed towards a variety of reasons, the two most important ones were Clinton’s economic program and her pro-war stance. …

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Are Keynesianism and Neoclassical economics antipodes?

Are Keynesianism and Neoclassical economics antipodes?
by Heiner Flassbeck
Keynesianism and neoclassical theory are often seen as the two main approaches in economic theory. Many assume that the large gap that exists between the two approaches or schools can be bridged by a middle oft he road approach based on pragmatic assumptions and empirical research. …

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Japan’s system, capital allocation, respect, mimetic eagerness and sustainability. Part 2. Can mimetic eagerness be a beneficial social force?

Introduction
I explained in Part 1 that economic rewards are not the only effective incentives for economic action. A successful economy requires motivating effects, which are pay differentials and opportunities to accumulate wealth. But these financial rewards are not the end of the story and economic rewards operate in a social context that can be as effective as cash. …

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Japan’s system, capital allocation, respect, mimetic eagerness and sustainability. Part 1: Japan’s macroeconomic architecture

Introduction
I just finished reading Thorstein Veblen’s The Theory of the Leisure Class (first published in 1899) and will write up an article on it soon. For now, apart from Veblen’s analysis of the nature of work, I have one other criticism: his distinction between the super-rich, …

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