Anna Carabelli

Italian Industrial Districts on the Move: Where Are They Going?

Since the second half of the 1990s the Italian economy has experienced a significant slowdown in the rate of economic growth. The “dwarfism” of its manufacturing firms, their specialization in traditional sectors and their organization in industrial districts have been identified by many scholars as major structural weaknesses in the Italian industrial system. Nevertheless, there is a vast and flourishing empirical literature showing that many industrial districts are actually changing in terms of sector specialization, international and innovation strategies and emergence of new forms of enterprise organization. In this paper, we provide a critical survey of the new and different patterns of industrial organization emerging in industrial districts.

Hayek and Keynes: From a common critique of economic method to different theories of expectations

The methodological positions of Hayek and Keynes contain striking similarities. Both authors opposed empiricist approaches to economics that assign priority to mere observation as the source of knowledge. Both emphasised intentionality, motivation and human agency. Notwithstanding this common ground, they had different conceptions of how beliefs are formed and had different explanations of thought and action in economics. Hayek grounded his explanation on an evolutionary theory of the mind, i.e. on psychological premises, whereas Keynes based his view of belief formation on probable reasoning, where probability is a logical concept. Starting from psychological premises Hayek maintained that individuals act rationally only by following rules. As a consequence, he considered conventional expectations to be the primary guide for agents in economic life. Keynes agreed that conventional expectations actually guide economic behaviour, but he maintained that they are justified only in situations of total ignorance. In conditions of limited knowledge, agents can base their action on reasonable expectations, independently of conventions. Moreover, agents−particularly those institutions responsible for economic policy−ought to shun conventional behaviour in order to counteract its negative social consequences. We argue that Keyness theory of expectations is well grounded upon his theory of logical probability. Hence his advocacy of discretionary policy is rationally justified.

The Economic Problem of Happiness: Keynes on Happiness and Economics

By stressing the substantial continuity of vision between John Maynard Keynes’s early unpublished essays and his more mature writings, the paper discusses Keynes’s ethics and focuses on his thoughts about happiness. In particular, we emphasize the anti-utilitarianism of Keynes’s vision and his belief that material wealth is but a precondition to enjoy the possibilities of a good life, and direct attention to problems of incommensurability raised by the multidimensional nature of happiness as considered by Keynes. We then argue that the rediscovery of Keynes’s legacy in this respect may be a precious counterweight to the most controversial aspects of today’s happiness research.

On Hayek and Keynes once again: a reply to Butos & Koppl

This note responds to Butos & Koppls comment on Carabelli & De Vecchi ( 2001 a). We acknowledge the many points of agreement between our own views on Keynes and Hayek and those of Butos & Koppl (especially as regards Hayek). Here we clarify some points of ours which have been challenged by Butos & Koppl, and introduce new arguments in support of our interpretation of Keyness rationalism.This note responds to Butos & Koppls comment on Carabelli & De Vecchi (2001a). We acknowledge the many points of agreement between our own views on Keynes and Hayek and those of Butos & Koppl (especially as regards Hayek). Here we clarify some points of ours which have been challenged by Butos & Koppl, and introduce new arguments in support of our interpretation of Keyness rationalism.

Further issues on the Keynes–Hume connection relating to the theory of financial markets in the General Theory

Abstract A basic presupposition of the rediscovery, in the times of the crisis, of chapter 12 of the General Theory is that Keyness treatment of financial markets, and particularly the use of the notion of convention, represents a crucial novelty in both his economics and philosophy. The article offers complicating remarks to critically discuss this interpretation. In particular, we analyse the complex Keynes–Hume theoretical connection in light of the Keynes–Sraffa correspondence on Humes Abstract, and emphasise the theoretical legacy of Keyness 1910 lectures on speculation for the analysis of financial markets in the General Theory.

On "fear of goods" in Keynes's thought

Abstract Offering a view of the other side of the liquidity issue, the paper elaborates on the concept of “fear of goods” in Keyness thought. It therefore illustrates numerous evidences of “fear of goods” in his economics, and aims to show that the notion might be considered as playing a quite important role in establishing connections between ideas that are apparently only weakly related. The article fosters an interpretation of the development of Keyness theoretical arguments and proposed policy instruments for both domestic and global economy, as reactions to the “fear of goods” of capitalism, which Keynes saw as an inborn propensity of monetary economies of production.

Keynes's 'General Theory', 'Treatise on Money' and 'Tract on Monetary Reform': Different Theories, Same Methodological Approach?

In trying to assess the content and significance of Keyness attempted revolution in economic methodology, historians have almost exclusively focused on the General Theory . By highlighting the legacy of the Treatise on Probability for Keyness economic writings, this article provides evidence of strong methodological continuity among the Tract on Monetary Reform , the Treatise on Money , and the General Theory , despite radical differences in the theories. We argue that the novelty of Keyness approach lies in offering a method of analysis requiring cooperation on the part of the reader, in the effort to tackle the complexity of the economic material.

Globalization and Keynes's Ideal of a 'Sounder Political Economy between All Nations'

This paper is a contribution to the elaboration of a narrative of the international economic disorder that followed the demise of the Bretton Woods regime. It therefore revisits some key episodes of the recent history of the world economy – the Washington Consensus saga and the widening of global imbalances – and throws light on the attempt made in the Nineties to construct a neoliberal global order entirely and exclusively based upon market discipline, with consequent shrinking in policy space. The article shows that the resulting “hyper” version of globalization is, in its essence, a complete repudiation of Keynes’s international economics, and discusses the enduring relevance of his vision of international economic relations and global reform plans to the current epoch of “gated globalization”.

Keynes against Kalecki on economic method

ABSTRACT In the past twenty years, there has been considerable debate on the “coherence” of post Keynesian economics, in view of post Keynesian economists’ ambitions to develop a paradigmatic alternative to neoclassical economics. Given the growing importance of methodological aspects in this discussion, this article addresses the differences of approach to economic theory between the fathers of the two most important strands in post Keynesian economics. We thus focus on Keynes’s criticism of Kalecki’s theory of the business cycle and the tensions between Keynes’s logical approach and Kaleki’s formal modeling. We show that in criticizing Kalecki’s theory, Keynes made use of the same methodological criticism (based on detecting logical fallacies in reasoning) he had employed to attack both the classical theory and contemporary “pseudo-mathematical” models. After illustrating these fundamental differences between Keynes and Kalecki about the proper way of doing economics, we draw some conclusions on the possible future evolution of post Keynesian economics.

From Theory to Policy? Keynes’s Distinction Between Apparatus of Thought and Apparatus of Action, with an Eye to the European Debt Crisis

The authors investigate the clash between general theory and practical constraints. They find in Keynes some answers to difficult questions.