by Linda Yueh
13. Robert Reich, 2012, Beyond Outrage: What Has Gone Wrong with Our Economy and Our Democracy, and How to Fix It, New York: Vintage Books, p. 142.
14. OECD, 2012, ‘Income Inequality and Growth: The Role of Taxes and Transfers’, OECD Economics Department Policy Notes, No. 9, Paris: OECD.
15. Alfred Marshall, 1890, Principles of Economics, vol. I, London: Macmillan, pp. 96–7.
16. Talcott Parsons, 1931, ‘Wants and Activities in Marshall’, Quarterly Journal of Economics, 46(1), pp. 101–40, at p. 128, n. 7, citing Alfred Marshall’s letter to the editor of The Times, ‘The Post Office and Private Enterprise’, 24 March 1891.
17. John Stuart Mill, 1848, Principles of Political Economy, London: John W. Parker, pp. 13–14.
18. Pigou, Memorials of Alfred Marshall, p. 363.
19. A. C. Pigou, 1953, Alfred Marshall and Current Thought, London: Macmillan, p. 56.
20. Jonathan D. Ostry, Andrew Berg and Charalambos G. Tsangarides, 2014, ‘Redistribution, Inequality, and Growth’, International Monetary Fund Staff Discussion Note SDN/14/02; www.imf.org/external/pubs/ft/sdn/2014/sdn1402.pdf
21. Groenewegen, A Soaring Eagle, p. 737.
22. Pigou, ed., Memorials of Alfred Marshall, p. 427.
Chapter 5 – Irving Fisher: Are We at Risk of Repeating the 1930s?
1. ‘Fisher Sees Stocks Permanently High’, The New York Times, 16 October 1929, p. 8.
2. Ibid.
3. Joseph Schumpeter, 1951, Ten Great Economists from Marx to Keynes, New York and Oxford: Oxford University Press, p. 223.
4. Irving Fisher, 1892, ‘Mathematical Investigations in the Theory of Value and Prices’, Transactions of the Connecticut Academy, 9, p. 119.
5. Robert Loring Allen, 1993, Irving Fisher: A Biography, Cambridge, MA and Oxford: Blackwell, p. 229.
6. Ibid., p. 17.
7. Irving Norton Fisher, 1956, My Father: Irving Fisher, New York: Comet Press Books, p. 26.
8. Irving Fisher, 1997, The Works of Irving Fisher, 14 vols., ed. William J. Barber, assisted by Robert W. Dimand and Kevin Foster, London: Pickering & Chatto, vol. I, p. 4.
9. Allen, Irving Fisher, pp. 147–8.
10. Irving Fisher and H. Bruce Brougham, 1928, Prohibition Still at its Worst, New York: Alcohol Information Committee.
11. Irving Fisher, 1919, ‘Economists in Public Service: Annual Address of the President’, American Economic Review, 9(1), Supplement: Papers and Proceedings of the Thirty-First Annual Meeting of the American Economic Association, pp. 5–21, at p. 16.
12. Ibid., p. 10.
13. Simon Newcomb, 1885, Principles of Political Economy, New York: Harper, p. 346.
14. Milton Friedman, 1963, Inflation: Causes and Consequences, Bombay: Asia Publishing House, p. 17.
15. Irving Fisher, 1933, ‘The Debt-Deflation Theory of Great Depressions’, Econometrica, 1(4), pp. 337–57, at p. 349.
16. Ibid., p. 344.
17. Ben Bernanke, 1983, ‘Nonmonetary Effects of the Financial Crisis in the Propagation of the Great Depression’, American Economic Review, 73(3), pp. 257–76.
18. Ben Bernanke, 2002, ‘Deflation: Making Sure “It” Doesn’t Happen Here’, remarks by Governor Ben S. Bernanke before the National Economists Club, Washington, DC, 21 November; www.federalreserve.gov/boarddocs/speeches/2002/20021121/
19. Hyman P. Minsky, 1992, ‘The Financial Instability Hypothesis’, The Jerome Levy Economics Institute of Bard College, Working Paper No. 74.
20. Ibid.
21. ‘Minsky’s Moment’, The Economist, 30 July 2016; www.economist.com/news/economics-brief/21702740-second-article-our-series-seminal-economic-ideas-looks-hyman-minskys
22. Janet Yellen, 2009, ‘A Minsky Meltdown: Lessons for Central Bankers’, presentation to the 18th Annual Hyman P. Minsky Conference on the State of the US and World Economies – ‘Meeting the Challenges of the Financial Crisis’; www.frbsf.org/our-district/press/presidents-speeches/yellen-speeches/2009/april/yellen-minsky-meltdown-central-bankers/
23. Ibid.
24. Allen, Irving Fisher, p. 9.
Chapter 6 – John Maynard Keynes: To Invest or Not to Invest?
1. John Maynard Keynes, 1936, The General Theory of Employment, Interest and Money, London: Palgrave Macmillan, p. 129.
2. Ibid.
3. John Maynard Keynes, 1963 [1931], ‘Economic Possibilities for Our Grandchildren’, in Essays in Persuasion, New York: W. W. Norton, p. 373.
4. John Maynard Keynes, 1971–89, The Collected Writings of John Maynard Keynes, 30 vols., ed. Elizabeth Johnson and Donald Moggridge, vol. XII, Economic Articles and Correspondence: Investment and Editorial, Cambridge: Cambridge University Press, p. 109.
5. Robert Skidelsky, 2003, John Maynard Keynes 1883–1946: Economist, Philosopher, Statesman, New York: Penguin, p. 53.
6. Ibid., p. 53.
7. Ibid., p. 36.
8. Ibid., p. 43.
9. Ibid., p. 45.
10. Ibid., p. 60.
11. Keynes, General Theory, p. 5.
12. Todd G. Buchholz, 2007, New Ideas from Dead Economists: An Introduction to Modern Economic Thought, New York: Penguin, p. 210.
13. Robert Skidelsky, 2010, Keynes: The Return of the Master, London: Penguin, p. 62.
14. Keynes, General Theory, p. 103.
15. Ibid., p. 158.
16. Ibid.
17. Keynes, Collected Writings, vol. IV: A Tract on Monetary Reform, p. 65.
18. Keynes, Collected Writings, vol. XXI: Activities 1931–1939: World Crises and Policies in Britain and America, p. 390.
19. John Maynard Keynes, 1937, ‘The General Theory of Employment’, Quarterly Journal of Economics, 51(2), pp. 209–23.
20. Ibid., pp. 215–16.
21. Ibid., p. 216.
22. Skidelsky, Keynes: The Return of the Master, p. 107.
23. Ronald Reagan, 1986, ‘Remarks to State Chairpersons of the National White House Conference on Small Business’, 15 August; www.reaganlibrary.gov/sites/default/files/archives/speeches/1986/081586e.htm
24. Ronald Reagan, 1986, ‘The President’s News Conference’, 12 August; www.presidency.ucsb.edu/ws/?pid=37733
25. Graeme Chamberlin and Linda Yueh, 2006, Macroeconomics, London: Cengage, ch. 4.
26. Keynes, General Theory, p. 373.
27. Ibid., p. 322.
28. Ibid., pp. 164, 378.
29. Ibid., pp. 383–4.
30. Keynes, Essays in Persuasion, p. 366.
31. Ibid., p. 369.
32. Ibid., p. 366.
Chapter 7 – Joseph Schumpeter: What Drives Innovation?
1. Joseph Schumpeter, 1942, Capitalism, Socialism and Democracy, New York: Harper & Brothers, p. 84.
2. Thomas K. McCraw, 2007, Prophet of Innovation: Joseph Schumpeter and Creative Destruction, Cambridge, MA: Harvard University Press, p. x.
3. Schumpeter, Capitalism, p. 83.
4. Joseph Schumpeter, 1939, Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, vol. II, New York: McGraw-Hill, p. 1033.
5. Schumpeter, Business Cycles, vol. I, p. 107.
6. Schumpeter, Capitalism, pp. 67–8.
7. Paul A. Samuelson, 1977, ‘Joseph A. Schumpeter’, Dictionary of American Biography, New York: Scribner, Supplement Four, p. 722.
8. McCraw, Prophet of Innovation, p. 40.
9. Joseph Schumpeter, 1954, History of Economic Analysis, New York: Oxford University Press, p. 571.
10. McCraw, Prophet of Innovation, p. 60.
11. Joseph Schumpeter, 1991 [1918], ‘The Crisis of the Tax State’, in The Economics and Sociology of Capitalism, ed. Richard Swedberg, Princeton: Princeton University Press, pp. 114–16.
12. McCraw, Prophet of Innovation, pp. 104–5.
13. Ibid., pp. 117–19.
14. Ibid., p. 165.
15. Ibid., p. 213.
16. Ibid., p. 223.
17. Ibid, p. 225.
18. Ibid.
19. Ibid., p. 27
1.
20. Nicolò De Vecchi, 2006, ‘Hayek and the General Theory’, European Journal of the History of Economic Thought, 13(2), pp. 233–58.
21. Schumpeter, Business Cycles, vol. I, p. vi.
22. Schumpeter, Capitalism, p. 83.
23. Schumpeter, Business Cycles, vol. I, pp. 104–7.
24. Schumpeter, Capitalism, pp. 93, 99–100.
25. Ibid., pp. 99–100.
26. Schumpeter, Business Cycles, vol. I, pp. 243–4.
27. Ibid., pp. 100–102.
28. Schumpeter, Capitalism, pp. 167, 170, 190–91.
29. Ibid., p. xiv.
30. Joseph Schumpeter, 1955, ‘Social Classes in an Ethnically Homogeneous Environment’, trans. Heinz Norden, in Imperialism, Social Classes: Two Essays by Joseph Schumpeter, New York: Meridian Books, pp. 120–22.
31. Joseph Schumpeter, 1928, ‘The Instability of Capitalism’, Economic Journal, 38, pp. 361–86.
32. Schumpeter, Business Cycles, vol. I, pp. 103–4.
33. World Bank, 1993, The East Asian Miracle: Economic Growth and Public Policy, Washington, DC: World Bank.
34. Schumpeter, ‘The Instability of Capitalism’, pp. 364–6.
35. Joseph Schumpeter, 1934, The Theory of Economic Development, Cambridge, MA: Harvard University Press, pp. 75–8.
36. Schumpeter, Business Cycles, vol. I, pp. 102–3.
37. Schumpeter, Business Cycles, vol. II, pp. 907–1033.
38. Schumpeter, Economic Development, pp. 75–8.
39. Ibid., p. 66.
40. Schumpeter, Capitalism, pp. 101–2, 110.
41. Richard Foster, 2012, ‘Creative Destruction Whips Through Corporate America’, Innosight Executive Briefing; https://www.innosight.com/wp-content/uploads/2016/08/creative-destruction-whips-through-corporate-america_final2015.pdf
42. Schumpeter, History of Economic Analysis, pp. 19, 27.
43. McCraw, Prophet of Innovation, p. 500.
Chapter 8 – Friedrich Hayek: What Can We Learn from Financial Crises?
1. Milton Friedman, 1999, ‘Transcript for: Friedrich Hayek’, Think Tank with Ben Wattenberg, pbs.org; www.pbs.org/thinktank/transcript726.html
2. Bruce Caldwell, 2004, Hayek’s Challenge: An Intellectual Biography of F. A. Hayek, Chicago: University of Chicago Press, p. 2.
3. Friedrich A. Hayek, 1994, Hayek on Hayek: An Autobiographical Dialogue, ed. Stephen Kresge and Leif Wenar, Chicago: University of Chicago Press, p. 40.
4. Caldwell, Hayek’s Challenge, p. 150.
5. Bruce Caldwell, 1998, ‘Why Didn’t Hayek Review Keynes’s General Theory?’, History of Political Economy, 30(4), pp. 545–69, at p. 556.
6. Nicholas Wapshott, 2011, Keynes Hayek: The Clash That Defined Modern Economics, New York: W. W. Norton, p. xi.
7. Sylvia Nasar, 2011, Grand Pursuit: The Story of the People Who Made Modern Economics, New York: Simon & Schuster, p. 402.
8. Ibid.
9. John Maynard Keynes, 1931, ‘The Pure Theory of Money: A Reply to Dr Hayek’, Economica, 34, pp. 387–97, at p. 394.
10. Paul Krugman, 1998, ‘The Hangover Theory’, Slate, 4 December; www.slate.com/articles/business/the_dismal_science/1998/12/the_hangover_theory.html
11. Alan Ebenstein, 2001, Friedrich Hayek: A Biography, New York: St. Martin’s Press, p. 81.
12. Athol Fitzgibbons, 1988, Keynes’s Vision: A New Political Economy, Oxford: Oxford University Press, p. 178.
13. Ebenstein, Friedrich Hayek, p. 128.
14. Friedrich A. Hayek, 2001 [1944], The Road to Serfdom, London and New York: Routledge Classics, pp. 124–5.
15. Caldwell, Hayek’s Challenge, p. 133.
16. Friedrich A. Hayek, 2006 [1960], The Constitution of Liberty, London and New York: Routledge, p. 44.
17. Ebenstein, Friedrich Hayek, pp. 196, 238.
18. Ibid., p. 261.
19. John Ranelagh, 1991, Thatcher’s People: An Insider’s Account of the Politics, the Power and the Personalities, London: HarperCollins, p. ix.
20. Friedrich A. Hayek, 1986, ‘The Moral Imperative of the Market’, in The Unfinished Agenda: Essays on the Political Economy of Government Policy in Honour of Arthur Seldon, London: Institute of Economic Affairs.
21. John B. Taylor, 2009, ‘The Need to Return to a Monetary Framework’, Business Economics, 44(2), pp. 63–72.
22. John B. Taylor, 2012, ‘Why We Still Need to Read Hayek’, The Hayek Lecture, The Manhattan Institute for Policy Research, New York City, 31 May; www.hoover.org/sites/default/files/hayek-lecture.pdf
23. Winston Churchill, 1974, ‘Speech, House of Commons, November 11, 1947’, in Winston S. Churchill: His Complete Speeches, 1897–1963, ed. Robert Rhodes James, London: R. R. Bowker, vol. VII, p. 7566.
24. Friedrich A. Hayek, 1979, A Conversation with Friedrich A. von Hayek: Science and Socialism, Washington, DC: American Enterprise Institute for Public Policy Research, p. 6.
25. Margaret Thatcher, 1993, The Downing Street Years, London: Harper-Press, p. 618.
26. John Campbell, 2008, Margaret Thatcher, vol. II: The Iron Lady, London: Vintage, p. 628.
27. Nobelprize.org, 1974, ‘Friedrich August von Hayek – Banquet Speech’, Nobel Media AB 2014; www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1974/hayek-speech.html
28. Daniel Yergin and Joseph Stanislaw, 1998, The Commanding Heights: The Battle Between Government and the Marketplace that is Remaking the Modern World, New York: Free Press, p. 150.
Chapter 9 – Joan Robinson: Why are Wages so Low?
1. ‘The Inquiry’, presented by Linda Yueh, BBC World Service, 8 March 2016.
2. Nahid Aslanbeigui and Guy Oakes, 2009, The Provocative Joan Robinson: The Making of a Cambridge Economist, Durham, NC: Duke University Press, p. 1.
3. ‘Prof. Joan Robinson Dies at 79; Cambridge’, The New York Times, 11 August 1983.
4. Paul Flatau, 2001, ‘Some Reflections on the “Pigou-Robinson” Theory of Exploitation’, History of Economics Review, 33, pp. 1–16.
5. Aslanbeigui and Oakes, The Provocative Joan Robinson, pp. 2–3.
6. Joan Robinson, 1932, Economics is a Serious Subject: The Apologia of an Economist to the Mathematician, the Scientist and the Plain Man, Cambridge: Heffer, p. 4.
7. Aslanbeigui and Oakes, The Provocative Joan Robinson, pp. 48–9.
8. Robert Skidelsky, 1995, John Maynard Keynes, vol. II: The Economist as Saviour, 1920–1937, London: Penguin, pp. 448–9.
9. Alec Cairncross, 1993, Austin Robinson: The Life of an Economic Adviser, Basingstoke: Macmillan, p. 172.
10. Aslanbeigui and Oakes, The Provocative Joan Robinson, p. 9.
11. Ibid., p. 133.
12. Joan Robinson, 1962, Economic Philosophy, Harmondsworth: Pelican Books, p. 25.
13. Ibid., p. 28.
14. Ibid.
15. Joan Robinson, 1969 [1933], The Economics of Imperfect Competition, 2nd edn, London: Macmillan, ch. 18 on monopsony.
16. International Labour Organization, 2014, Global Wage Report 2014/15, Geneva: International Labour Office, p. 10.
17. International Labour Organization and Organisation for Economic Co-operation and Development, with contributions from the International Monetary Fund and World Bank Group, 2015, ‘The Labour Share in G20 Economies’, report prepared for the G20 Employment Working Group, Antalya, Turkey, 26–27 February.
18. Joan Robinson, 1980, ‘Marx, Marshall and Keynes’, Collected Economic Papers, vol. II, Cambridge, MA: MIT Press, p. 17.
19. Robinson, Economic Philosophy, p. 45.
Chapter 10 – Milton Friedman: Are Central Banks Doing Too Much?
1. Milton and Rose Friedman, 1998, Two Lucky People: Memoirs, Chicago: University of Chicago Press, p. 22.
2. Ibid., p. 262.
3. Ibid., p. xi.
4. Ibid., p. 165.
5. Lanny Ebenstein, 2007, Milton Friedman: A Biography, New York: Palgrave Macmillan, p. 100.
6. Ibid., p. 47.
7. Ibid., p. 52.
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8. Milton and Rose Friedman, 1980, Free to Choose, San Diego: Harcourt, p. 310.
9. ‘Milton Friedman in His Own Words’, 2012, Becker Friedman Institute for Research in Economics, University of Chicago; https://bfi.uchicago.edu/news/post/milton-friedman-his-own-words.
10. Ibid.
11. Ibid.
12. Ebenstein, Milton Friedman, p. 187.
13. Ben Bernanke, 2002, ‘On Milton Friedman’s Ninetieth Birthday’, Remarks by Governor Ben S. Bernanke: At the Conference to Honor Milton Friedman, University of Chicago, 8 November; www.federalreserve.gov/boarddocs/speeches/2002/20021108/default.htm
14. Milton Friedman, 1997, ‘Rx for Japan: Back to the Future’, Wall Street Journal, 17 December.
15. Ibid.
16. Ibid.
17. Milton Friedman, 1991, ‘Economic Freedom, Human Freedom, Political Freedom’, address by Milton Friedman, The Smith Center, Seattle Central College, 1 November; http://seattlecentral.edu/faculty/jhubert/friedmanspeech.html
18. Milton Friedman, 2002 [1962], Capitalism and Freedom: Fortieth Anniversary Edition, Chicago: University of Chicago Press, p. xii.
19. Ebenstein, Milton Friedman, p. 182.
20. ‘Milton Friedman in His Own Words’.
Chapter 11 – Douglass North: Why are so Few Countries Prosperous?
1. Pierre-Richard Agénor, Otaviano Canuto and Michael Jelenic, 2012, ‘Avoiding Middle-Income Growth Traps’, Economic Premise, 98, Washington, DC, World Bank, p. 1.
2. Douglass C. North, 1988, ‘Institutions, Economic Growth and Freedom’, in Freedom, Democracy and Economic Welfare: Proceedings of an International Symposium, ed. Michael A. Walker, Vancouver: Fraser Institute, p. 7.
3. Douglass C. North, 1990, Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University Press, p. 6.
4. Ibid., p. 7.
5. Lennart Jörberg, 1997, ‘Robert W. Fogel and Douglass C. North’, in Nobel Lectures in Economic Sciences, 1991–1995, ed. Torsten Persson, Singapore: World Scientific, pp. 107-8.
6. Douglass C. North, Gardner Brown and Dean Lueck, 2015, ‘A Conversation with Douglass North’, Annual Review of Resource Economics, 7, pp. 1–10, at p. 6.