Debt, Deficits or Unemployment

Identifying Real Threats to Growth
Tuesday November 13, 2012

This seminar explores the intersection between the real and monetary (or nominal) economy. It addresses the relationship between money and economic growth, and explores popular misconceptions surrounding the “sustainability” of government deficits, national debt and trade deficits for developed and developing nations.

Overview

This seminar explores the intersection between the real and monetary (or nominal) economy. It addresses the relationship between money and economic growth, and explores popular misconceptions surrounding the “sustainability” of government deficits, national debt and trade deficits for developed and developing nations. Questions to be addressed include:

  • Why does unemployment exist in a monetary economy?

  • How does a nation’s developmental stage affect the sustainability of government deficits?

  • Is national debt a problem, and if so, under what conditions?

  • Can developing nations “afford” welfare programs?

  • What is the relationship between capital flows, trade and exchange rates?

  • What is the relationship between money creation, exchange rates and global competitiveness?

Participants

Speakers:

Participant Profile

John T. Harvey

Professor of Economics
Texas Christian University

John T. Harvey, Ph.D. is a Professor and former Chair of the Department of Economics at Texas Christian University. In 2010, Dr. Harvey published a book titled Currencies, Capital Flows and Crises (Routledge), which presented a Post-Keynesian explanation of exchange rate determination based on the premise that it is financial capital flows and not international trade that represents the driving force behind currency movements. Dr. Harvey currently writes an economics blog for Forbes called Pragmatic Economics, which offers economic commentary in a manner understandable to the general public, and can also be followed on Twitter.

Participant Profile

Jan Kregel

Senior Scholar
Levy Economics Institute of Bard College

Jan Kregel, Ph.D. is a Professor of Development Finance at Tallinn University of Technology and a Senior Scholar at the Levy Economics Institute of Bard College, where he also serves as the Director of the Institute’s Monetary Policy and Financial Structure program. He has previously served as Rapporteur of the President of the UN General Assembly’s Commission on Reform of the International Financial System, Director of the Policy Analysis and Development Branch of the UN Financing for Development Office, and Deputy Secretary of the UN Committee of Experts on International Cooperation in Tax Matters.

Moderator: 
Participant Profile

Nathan C. Tankus

John Jay School of Criminal Justice

Nathan Tankus is currently a student at John Jay School of Criminal Justice and a research scholar with the Modern Money Network. He has been a research assistant at the University of Ottawa and a visiting researcher at the Fields Institute.

Outline

Resources

Resource List

John T. Harvey

Resource List

Jan Kregel

Resource List

Related Materials

Biblio

The Rise and Fall of Export-Led Growth

Palley, Thomas I. The Rise and Fall of Export-Led Growth. Working Paper. Annandale-on-Hudson, NY: The Levy Economics Institute of Bard College, 2011.
Biblio

Globalization and the Changing Trade Debate

Palley, Thomas I. Globalization and the Changing Trade Debate. Public Policy Brief. Annandale-on-Hudson, NY: The Levy Economics Institute of Bard College, 2007.

Transcript