This paper analyzes two instruments - asset-based reserve requirements put forward by Thomas Palley and asset-based capital requirements proposed by Charles Goodhart and Avinash Persaud - regarding their merits in reducing excessive asset price inflation. A theoretical framework of asset pricing...

First paragraph: After the start of reform in 1978 China became one of the most successful developing countries in the world economically. China did not follow the philosophy of neoclassical development models upheld by the Washington Consensus and the savings-gap model. In fact, the Chinese...

In neoclassical thinking, insufficient development is considered the result of a lack of resources, and an inefficient allocation. Deregulated markets have to guarantee a better allocation of resources as well as a net resource inflow to augment the domestic physical capital stock. From a...