Financial Assets, Debt and Liquidity Crises: A Keynesian Approach

The macroeconomic development of most major industrial economies is characterised by boom-bust cycles. Normally such boom-bust cycles are driven by specific sectors of the economy. In the financial meltdown of the years 2007-2009 it was the credit sector and the real-estate sector that were the main driving forces. This book takes on the challenge of interpreting and modelling this meltdown. In doing so it revives the traditional Keynesian approach to the financial-real economy interaction and the business cycle, extending it in several important ways. In particular, it adopts the Keynesian view of a hierarchy of markets and introduces a detailed financial sector into the traditional Keynesian framework. The approach of the book goes beyond the currently dominant paradigm based on the representative agent, market clearing and rational economic agents. Instead it proposes an economy populated with heterogeneous, rationally bounded agents attempting to cope with disequilibria in various markets

Decomposition of Agriculture Farm Wastes by Cellulolytic Bacteria

The most important component of the greatest material flow in the biosphere is the microbial consumption of cellulose. Despite the abundance of cellulase manufacturers, there aren't enough microorganisms that can effectively create enough of the enzyme to effectively break down cellulose into fermentable compounds. Despite the fact that bacteria have a very high level of natural variety and the potential to manufacture stable enzymes, little attention has been paid to their ability to produce cellulase. The present study aimed at the isolation and selection of cellulose degrading bacteria isolated from different samples for agriculture waste decomposition. Bacterial cultures were applied on agriculture waste material comprising soybean straw, pigeonpea straw; wheat straw and cotton stalk to investigate their percentage loss in weight. Among all the cultures, CDB 19 has shown the highest weight loss of the substrate (99.99%) followed by CDB 20 (99%), CDB5 (94.2%), CDB2 (92.8%) and CDB14 (88.6%). It was also observed that maximum weight loss of cotton straw (99.99%) was recorded by mixed culture followed by Pigeonpea straw and Soybean straw, while Wheat straw recorded minimum weight loss at 60 days of decomposition

Credit-Driven Investment, Heterogeneous Labor Markets and Macroeconomic Dynamics

In this paper we set up a baseline, but nevertheless advanced and complete model representing detailed goods market dynamics, heterogeneous labor markets, dual and cross-dual wage-price adjustment processes, as well as counter-cyclical government policies. The cyclical movements of output generate, through Okun’s law, employment variations in the heterogeneous labor market. The core of the resulting Keynesian macrodynamics is however given by credit-financed investment behavior and loan-rate setting by credit suppliers. The framework is constructed in such way that simplified, lower dimensional versions of the model can be obtained by setting parameters describing specific feedback effects from one sector to another equal to zero. Starting from such low dimensional sub-dynamics, we show the local stability of the full 7D model through a “cascade of stable matrices” approach if the feedback chains are sufficiently tranquil in their transmission mechanisms. However, local stability is the point of departure for the numerical investigation of local explosiveness and the forces that can bound such a behavior

Income Distribution and Growth: A Global Model

This paper estimates the effects of a change in the wage share on growth at global level in the G20 countries. A decrease in the wage share in isolation leads to lower growth in the euro area, Germany, France, Italy, the UK, the US, Japan, Turkey, and South Korea, whereas it stimulates growth in Canada, Australia, Argentina, Mexico, China, India, and South Africa. However, a simultaneous decline in the wage share in all these countries leads to a decline in global growth. Furthermore, Canada, Argentina, Mexico, and India also experience negative effects on growth when they decrease their wage share along with their trading partners. The results indicate that the global decline in labour share has had significant negative effects on growth