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Dive into the research topics where David A. Zalewski is active.

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Featured researches published by David A. Zalewski.


Journal of Economic Issues | 2010

Financialization and Income Inequality: A Post Keynesian Institutionalist Analysis

David A. Zalewski; Charles J. Whalen

One of the most troubling developments in recent years has been widening income inequality in the United States and elsewhere. We argue Post Keynesian Institutionalism (PKI) provides insight into the causes of increasing income inequality and our contribution is threefold. First, we compare PKI to the “financialization” literature, noting key similarities and differences. Second, we examine changes in financial structure and income inequality for a sample of developed nations, showing that financialization has increased in nearly all the countries sampled and that this increase has generally been accompanied by a rise in income inequality. Third, we demonstrate that the development of modern financial structures does not preclude an expansive welfare state and egalitarian public policies. Our finding is congruent with Hyman Minskys conception of PKI, which stressed both that “economic systems are not natural systems” and that capitalism comes in as many varieties as Heinz has of pickles.


The Journal of Economic History | 1994

Uncertainty as a Propagating Force in The Great Depression

J. Peter Ferderer; David A. Zalewski

This article argues that the banking crises and collapse of the international gold standard in the early 1930s contributed to the severity of the Great Depression by increasing interest-rate uncertainty. Two pieces of evidence support this conclusion. First, uncertainty (as measured by the risk premium embedded in the term structure of interest rates) rises during the banking crises and is positively linked to financial-market volatility associated with the breakdown in the gold standard. Second, the risk premium explains a significant proportion of the variation in aggregate investment spending during the Great Depression. All the notions we thought solid, all the values of civilized life, all that made for stability in international relations, all that made for regularity in the economy. . . in a word, all that tended happily to limit the uncertainty of the


The Journal of Economic History | 1999

To raise the golden anchor? Financial crises and uncertainty during the Great Depression

J. Peter Ferderer; David A. Zalewski

This study examines the interplay between financial crises, uncertainty, and economic growth during the interwar period. Comparing the experiences of ten countries, we provide evidence that reductions in the credibility of a countrys commitment to the gold standard generated capital flight and higher interest rate volatility. This volatility, in turn, was inversely correlated with economic growth. These results suggest that financial crises helped propagate the Great Depression, in part, by increasing uncertainty.


Forum for Social Economics | 2010

Securitization, Social Distance, and Financial Crises

David A. Zalewski

Because the process of securitizing home mortgages played a critical role in precipitating the recent financial crisis, it is widely agreed that this market must be reformed to prevent future collapses. Most proposals focus on improving the dissemination of information among securitization participants, and on strengthening incentives to discourage excessive risk-taking. This paper argues that because securitization involves the commodification of the lending relationship, it reinforces the type of self-interested behavior that often undermines regulatory efforts. What are needed are structural reforms that encourage moral behavior by narrowing the social distance between lenders and borrowers. This can be accomplished by a return to traditional banking lending, supplemented by the use of covered bonds to loosen credit constraints and to help financial intermediaries manage market risk.


Journal of Economic Issues | 2011

Too Important to Fail: A Reconsideration of the Lender of Last Resort Function

David A. Zalewski

Despite unprecedented lender-of-last-resort efforts by the Federal Reserve and the Treasury Department, the U.S. economy continues to be plagued by high levels of unemployment and foreclosures. Although several proposals to address these problems have been developed, their reactive nature limits their potential effectiveness. This paper describes how combining an employer-of-last-resort program with Treasury-financed mortgage mitigation initiatives could enhance economic stabilization.


Journal of Economic Issues | 2005

Economic Security and the Myth of the Efficiency/equity Tradeoff

David A. Zalewski

Confronted with an uncertain future driven by heightened global competition, rapid technological change, and volatile energy prices, a growing number of managers have responded by becoming more flexible in their use of resources. For example, their firms have increased the use of temporary employees, adopted just-in-time production systems, and grouped people into work teams that can be reorganized rapidly as business conditions change. What these strategies have in common is the conversion of fixed into variable costs, which helps insulate profits against unforeseen disruptions in business conditions. This preference for flexibility is even stronger for financing and investment decisions. For example, because most financial transactions occur in an environment characterized by asymmetric information, investors prefer liquid securities and engage in practices such as the sequential financing of venture capital deals. Moreover, many executives have begun to treat capital project proposals as a series of real options, enabling them to gauge how improvements in the timing of investment expenditures can increase the firms value. The way these practices reduce uncertainty is by shortening the investment time horizon, which is crucial for companies that must invest in long-term, often irreversible assets. Neoclassical economists support this quest for flexibility on the presumption that it improves allocative efficiency, despite the fact that it usually increases wage and employment insecurity. However, as Glen Atkinson noted, the tradeoff between equity and


Chapters | 2011

Towards a more rapid recovery: incorporating subsidiarity into macroeconomic policy

David A. Zalewski; Charles J. Whalen

This timely book rethinks economic theory and policy by addressing the problem of economic instability and the need to secure broadly shared prosperity. It stresses that advancing economics in the wake of the Great Recession requires an evolutionary standpoint, greater attention to uncertainty and expectations, and the integration of finance into macroeconomics. The result is a broader array of policy options – and challenges – than conventional economics presents.


International Journal of Pluralism and Economics Education | 2011

Teaching about financial crises: a methodological approach

David A. Zalewski

The recent financial crisis has prompted many business school leaders to reconsider the course content of their finance programmes. I argue that students would benefit from an understanding of how neoclassical and heterodox economists study the structure and function of financial systems. To accomplish this, the paper offers suggestions on how to incorporate these methodologies into the curriculum, and also provides strategies to obtain support from faculty who are unfamiliar with non-mainstream research techniques.


Journal of Economic Issues | 2018

Uncertainty, Control, and Karl Polanyi’s Protective Response

David A. Zalewski

Abstract: Post-Keynesian institutionalist economists like Wallace Peterson and John Kenneth Galbraith recognized that the impact of uncertainty on economic wellbeing depends in part on the degree of control people have over the sources and consequences of it. Given the inability of government and other large institutions to reduce uncertainty or to provide citizens with the ability to manage it, mediating structures are considered as an alternative means of promoting economic security. The article concludes by describing and evaluating several of these alternatives.


International Journal of Pluralism and Economics Education | 2014

Integrating liberal arts into the finance curriculum: a suggested approach

David A. Zalewski

Recent studies find that business school students would benefit from a further integration of traditional disciplines with the liberal arts. This paper outlines a suggested approach for accomplishing this in a finance capstone course, and reports the results from student assessments. The findings suggest that coursework aimed at developing critical thinking and communications ability can be designed in ways that complement standard business programmes.

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