If the U.S. trade deficit remains around its present level for a few more years it will generate an exploding growth in overseas indebtedness which will imperatively demand correction at some stage. The longer the correction is postponed, the more intractable the problem will become both for the...

The concept of the minimum wage has undergone several rhetorical permutations. Originally conceived as a living wage, which would function as a family wage, it ultimately became a matter of macroeconomic policy, the goals of which were to achieve greater efficiency and in some cases economic...

The standard neoclassical model is the foundation of most mainstream macroeconomics. Its basic structure dominates the analysis of macroeconomic phenomena, the teaching of the subject, and even the formation of economic policy. And of course the modern quantity theory of money and its attendant...

This paper uses a simulation model to describe the role which bank money and bank loans must play when decisions by households and firms are taken under conditions of uncertainty and when production takes time. Its main purpose is to integrate the theory of money and finance into that of income...

Traditional economic models have largely failed to account adequately for the roles of money and finance in economic operations. For example, traditional models assume an exogenously determined, fixed money stock and ignore the outcomes of spending changes that result from changes in bank loans....

This paper presents a simple growth model grounded in a stock-flow monetary accounting framework. The framework ensures that all stocks and flows are accounted for and that the real and financial sides of the economy are coherent with one another. Credit, money, equities, and stocks of real...

During the last fifteen years the Fed has experimented with a variety of monetary targets, including reserve aggregates (borrowed and nonborrowed); monetary aggregates as measured by M1, M2, and even M3; prices, as measured by P-Star, price indexes, gold prices, and expected inflation; and a...

Recent low and stable inflation rates are, according to most observers, the result of the Federal Reserve's monetary policy, and most observers do not seem to question that the Fed's sole responsibility is to fight inflation. However, as Executive Director Dimitri B. Papadimitriou and Research...

The first part of this paper is an overview of projections of Social Security's future and an explanation of why the projections have led many to believe there is a looming financial crisis. We argue that any problems to be faced are far down the road and not severe enough to justify the use of...

The difficulties in achieving a consensus regarding the definition of the underclass cannot be minimized. The term was first coined by The New Yorker writer Ken Auletta (1982) who used it broadly to include individuals with "behavioral and income deficiencies." Other definitions have been...