The Twin Deficit Hypothesis

Simply put the twin deficit hypothesis is the view that an economy running a fiscal budget deficit will also run a current account deficit. It stems from a national accounting equation which says that NX = S-I. We arrive at this point because Classical economists take S = Y-C-G, so we can arrange our national Read more about The Twin Deficit Hypothesis[…]

Demography and the Industrial Revolution

What were the causes of the distinctive characteristics of English fertility behaviour during the Industrial Revolution? (b) How did the fertility rate interact with economic growth during this period? Before the causes of fertility behaviour are explored, we need to first look at what these characteristics were in the first place. From the graph to Read more about Demography and the Industrial Revolution[…]

Thatcher and Conservatism

Margaret Thatcher broke the post-war consensus in British politics and in so doing changed Conservatism in a fundamental way. Discuss. It is generally agreed that the post-war consensus consisted of 3 broad pillars – the welfare state, a mixed economy and Keynesian demand-management to ensure full-employment. Let us firstly turn to Keynesian demand management; the Read more about Thatcher and Conservatism[…]

Politics in Post-War Britain

Winston Churchill and Clement Attlee established a coherent political order in post-war British politics. Discuss. The 3 main pillars of the post-war order were; a welfare state, a mixed economy and maintaining full employment. These three policies were introduced by Attlee’s Labour government between 1945 and 1950. They came about through a change in ideology Read more about Politics in Post-War Britain[…]

Post-Keynesianism Part II

Day 1 – Talk 2 After our Introduction to Post-Keynesianism from Engelbert Stockhammer we were given a talk by Ozlem Onaran, from Greenwich University, on “Aggregate demand, income distribution and unemployment”. She begins by adding to Engelbert’s introduction, highlighting that fundamental uncertainty can lead to path dependency – that is decisions made today (as a Read more about Post-Keynesianism Part II[…]

What is hysteresis?

I recently wrote an article on the situation in Greece, and mentioned the effects of hysteresis which I will expand upon in this blog article. Hysteresis is a theory developed by the Keynesians to explain why laissez-faire economic policy may be damaging in the long run. Neoclassicalists would argue that during an economic downturn, when Read more about What is hysteresis?[…]