Paul Davidson

Crude Oil Prices: "Market Fundamentals" or Speculation?

Is there a way to lower oil prices? Yes, says this author. First, we acknowledge that speculation has driven prices up to current levels. Then, we—the U. S. government—sell oil into the market. Read on.

Securitization, Liquidity, and Market Failure

Computerized markets do not work the way the old securities markets once did. In the past, there were always market makers who stood between the buyer and the seller. Today, this is an antiquated system, relegated to such ancient institutions as the New York Stock Exchange. But this economist argues they are of far more than symbolic importance. Efficient markets will not guarantee liquidity, he says. The theory is wrong. And Keynes himself provides an important insight for how to proceed.

Alternative Explanations of the Operation of a Capitalist Economy

Why has financial deregulation led to credit crisis? This macroeconomist returns to John Maynard Keynes for an explanation of the failure of financial markets—and indeed the failure of accepted economic theory today—to warn the nation, no less to prevent its occurring.

The Economics of Natural Resources

Post-Keynesian theorists view the economic problems surrounding raw materials (that is, natural resources) in a very different light from orthodox neoclassical economic theory. This point can perhaps best be illustrated in the context of the current so-called ‘energy crisis’.

Aging Population, Health-Care Costs, and the National Debt

Fear of deficits should not limit our ability to seek solutions to the medical needs of our aging population. There are many possibilities, argues this eminent economist.