Post-Keynesian Empirical Research and Debate on Financial Market Development

Current research often highlights the importance of financial markets as well as financial system development. However, the current literature in this field still fails to adequately explain the relationship between financial market and macroeconomic development. Post-Keynesian Empirical Research and the Debate on Financial Market Development integrates the concept of financial intermediaries with Post-Keynesian macroeconomic modeling to discuss the relationship between financial markets and systems and macroeconomic development. Discussing key macroeconomic variables such as investment, savings, and productivity growth, this timely resource is essential for students, academicians, as well as finance and economics professionals interested in uncovering the latest research in this field

Responsiveness and the resilience of Queensland economy to climatic disasters: through a Post-Keynesian lens

Natural disasters and their economic impacts have been neglected in the main stream of development and growth theories. Only recently a body of research into the economic effects of natural disasters began to emerge. This body of literature considers both the socio-economic impact caused by natural disasters and how the socio-economic conditions within a country prior to a natural disaster impacts on the response to disaster event when it occurs. However, most of these discussions fail to adequately integrate this relationship into a general macro-economic model. This paper attempts to analyse the dynamic effect of climatic disasters on key economic variables of the state of Queensland for the period of 1980 to 2010. A Kaleckian-Post-Keynesian multi-sectoral open economy model, which is augmented by a demand driven labour market, a reserve army effect in the Marxian sense and technological change is being utilised and econometric long run relationship between variables are investigated. The paper predominantly emphasises on the link between climatic disasters and sources of economic growth such as state accumulation, savings, income distribution and labour market fluctuations. By employing the Structural vector autoregressive (SVAR) approach by imposing short and long-run restriction on SVAR model. The short run restrictions impose contemporaneous feedback effects among the real sector economic variables and indicators of natural disasters following the methodology described in Bernanke (1986), Blanchard and Watson (1986), and Sims (1986), and the long run restrictions in SVAR approach is an alternative to cointegration for capturing long-run equilibrium relationships. In this study we assume that Queensland economy faces exogenous, random shocks (unexpected variation) to climate conditions, which can have substantial impact on key economic indicators, then the main intention is to examine whether key economic indicators differ significantly in their responses to climatic shocks in the medium term to long run

The resilience shift: it is all in the partnership

Economic resilience is operative in three levels of macro (governments), meso (market mechanisms) and micro (individual agents/ businesses) (Chaiechi, 2022). Economic resilience can be achieved through either or both inherent and adaptive strategies. Inherent resilience is an ordinary ability to manage a crisis, and it is routinely provided through resource allocation. Adaptive resilience is generally the system's ability to maintain functionality after being shocked that is achievable on the basis of extra effort. Due to large degrees of interdependencies between economic sectors, adaptive resilience in one sector can be significantly affected by changes in adaptive capacities in another. Therefore, efforts to build economic resilience cannot be implemented only by governments and at the macro level

Editorial- The Resilience Shift: It is All in the Partnership

[Extract] The twenty-first century has witnessed widespread global financial crises, public health emergencies, loss of livelihoods and lives. These crises destructively affected communities and economies globally, resulting in massive social and economic disruptions. We have seen how these crises have brutally constricted financing conditions for many businesses across the revenue spectrum, disrupting supply chains, trade, and investment flows (Chaiechi, 2014a). These disastrous events have overwhelmingly impacted the population's economic, physical and mental well-being, particularly those in vulnerable situations

Urban growth, heat islands, humidity, climate change: the costs multiply in tropical cities

Some 60% of the planet’s expected urban area by 2030 is yet to be built. This forecast highlights how rapidly the world’s people are becoming urban. Cities now occupy about 2% of the world’s land area, but are home to about 55% of the world’s people and generate more than 70% of global GDP, plus the associated greenhouse gas emissions. So what does this mean for people who live in the tropical zones, where 40% of the world’s population lives? On current trends, this figure will rise to 50% by 2050. With tropical economies growing some 20% faster than the rest of the world, the result is a swift expansion of tropical cities

City temperatures and city economics, a hidden relationship between sun and wind and profits

Urban design undoubtedly influences the urban economy. A simple thing like designing an area to make it more walkable can boost local business profits. This can also increase real estate value, create more and better jobs and generate stronger local economies. Street temperatures also determine their walkability. With climate change bringing longer and more frequent heatwaves, street temperatures will become even higher than at present. This will reduce walkability and, in turn, local business profitability

Productivity growth recovery mechanisms: an ARDL approach lessons from the United States, Japan and South Korea

Productivity growth is an essential ingredient for achieving long-term economic growth and sustainable development. In the absence of such growth, economic growth is not achievable. Accordingly, this paper examines economic resilience through multiple productivity channels within the United States, Japan and South Korea. Adopting a Kaleckian post-Keynesian approach, productivity growth is constructed as a function of investment, capacity utilisation, indicators of financial development, and an indicator of fiscal policy. Utilising annual historical data from 1980-2019, this paper adopts Autoregressive Distributed Lag (ARDL) models, Vector Autoregressive-based Impulse Response Functions (IRF) and Variance Decompositions (VD) to examine the resilience of productivity growth through the speeds of adjustment after an external shock. Results show that long and short-run unidirectional causality between productivity growth and the explanatory variables exists amongst all economies through the errorcorrection terms (ECT) and ARDL models. When imposing a simulated one-time S.D. shock upon the explanatory variables, differing speeds of adjustment and recovery processes in the long-run are present. As such, the strength of causal relationships amongst productivity growth and the explanatory variables ultimately affects speeds of adjustment and hence recovery

Urban design and economic growth: an analytical tale of two tropical cities

Federal and local governments around the world usually hail urbanisation as a sign of economic progress. However, the relationship is not that simple. The existence of agglomeration economies does not mean that urbanisation will directly result in positive economic outcomes. Also, there is significant diversity in urban growth patterns, with each pattern resulting in different economic and social outcomes. The diversity in patterns of urban growth and transformation implies that different economies can grow at different speeds in achieving socioeconomic goals. This study explores the urban development of two tropical cities – Cairns and Singapore – with a focus on their different urban growth patterns. Cairns is an expanding tropical Australian city located far from main urban centres, meaning it needs attention to foster positive change that will produce distinctive urban spaces which improve quality of life while providing economic growth opportunities. The city of Singapore is a tropical island-state situated near the equator with limited land and natural resources, and one of the largest urban populations in Southeast Asia. Its landscapes are constantly changing as urban planning plays a key role in formulating and guiding the physical terrains of modern Singapore, thereby shaping the quality of life of its population

Growth enterprise market in Hong Kong: efficiency evolution and long memory in return and volatility

Purpose: Growth enterprise market (GEM) in Hong Kong is acknowledged as one of the world’s most successful examples of small and medium enterprise (SME) stock market. The purpose of this paper is to examine the evolving efficiency and dual long memory in the GEM. This paper also explores the joint impacts of thin trading, structural breaks and inflation on the dual long memory. Design/methodology/approach: State-space GARCH-M model, Kalman filter estimation, factor-adjustment techniques and fractionally integrated models: ARFIMA–FIGARCH, ARFIMA–FIAPARCH and ARFIMA–HYGARCH are adopted for the empirical analysis. Findings: The results indicate that the GEM is still weak-form inefficient but shows a tendency towards efficiency over time except during the global financial crisis. There also exists a stationary long-memory property in the market return and volatility; however, these long-memory properties weaken in magnitude and/or statistical significance when the joint impacts of the three aforementioned factors were taken into account. Research limitations/implications: A forecasts of the hedging model that capture dual long memory could provide investors further insights into risk management of investments in the GEM. Practical implications: The findings of this study are relevant to market authorities in improving the GEM market efficiency and investors in modelling hedging strategies for the GEM. Originality/value: This study is the first to investigate the evolving efficiency and dual long memory in an SME stock market, and the joint impacts of thin trading, structural breaks and inflation on the dual long memory