Mark Setterfield
Biographic Data
| ID | 1510513 |
|---|---|
| NAME | Mark Setterfield |
| GIVEN NAMES | Mark |
| FAMILY NAME | Setterfield |
| SIGNATURE | SETTERFIELD M |
| AFFILIATIONS | Trinity College |
| ORCID | 0000-0002-5483-5500 |
| VERIFIED | Yes |
| TOTAL WORKS | 22 |
| TOTAL CITATIONS | 44 |
| WORKS AS AUTHOR | 22 |
| WORKS AS EDITOR | 0 |
| FIRST PUBLICATION YEAR | 1995 |
| LATEST PUBLICATION YEAR | 2024 |
| H-INDEX | 3 |
Animal Spirits and the Goodwin Pattern
Managing the Discontent of the Losers Redux
Neoliberalism eviscerated the value-sharing ethos of the postwar golden age (1945-1973), seeking to maintain social cohesion in civil society by "managing the discontent of the losers": reconciling working households to the realities of the neoliberal labor market by means of coercion, distraction, and debt accumulation (the last serving to limit the growth of consumption inequality in the face of burgeoning income inequality). The global financi…
Capitalism, Inclusive Growth, and Social Protection
After more than four decades of real income stagnation, ever-increasing inequality and household financial distress, this book explores how the very fabric of our society is under threat. It argues that although capitalism is imperfect, it can be improved, and harnessing its forces of production to more suitable social relations of production is key to that improvement.
Whatever Happened to the ‘Goodwin Pattern’? Profit Squeeze Dynamics in the Modern American Labour Market
The 'Goodwin pattern' -- an anti-clockwise rotation in real activity x wage share space recurring at intervals that correspond roughly to the duration of business cycles -- is an enduring feature of high-frequency dynamics in capitalist economies. It is well known that the centre or focus of this rotation shifts over time. More recently, however, the Goodwin pattern seems to have broken down, the wage share no longer increasing as the real econom…
Managing the discontent of the losers
During the 1990s, social structure of accumulation (SSA) theorists identified the solidification of a neoliberal SSA that included a capital-citizen accord based on ‘managing the discontent of the losers’. This created social stability by reconciling working households to material hardships emanating from the neoliberal labour market by means of either coercion or non-economic distraction. This paper argues that there was, in fact, a material bas…
Intermediation, Money Creation, and Keynesian Macrodynamics in Multi-agent Systems
This paper offers a simple computational model of monetary creation, derived from individual agent behavior, that provides additional support for the well-known and more or less universally accepted idea that money creation is inevitable in demand-driven Keynesian economies. The endogeneity of money is linked to asynchronous production, in which investment is set autonomously by a combination of animal spirits and capacity utilization, while savi…
Inequality, Debt Servicing and the Sustainability of Steady State Growth
We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance. A Kaleckian growth model is modified to incorporate working households who borrow to finance consumption that is determined, in part, by the desire to emulate the consumption patterns of more affluent households. The impact of this behavior on the sustainability of the growth process is then studied by means of a numerical a…
The Remarkable Durability of Thirlwallâ s
The Cost Channel of Monetary Transmission and Stabilization Policy in a Post-Keynesian Macrodynamic Model
This paper develops a macrodynamic model that takes into account the potentially inflationary consequences of interest rate manipulations through the cost channel of monetary transmission. Evaluations of the macroeconomic implications of the cost channel are common in the mainstream literature. But this literature uses supply-determined macro models and provides standard optimizing microfoundations for the various ways in which the interest rate …
Macrodynamics for a Better Society
John Cornwall devoted his career to advancing macroeconomics with a view to improving the societies in which we live. We identify three distinct phases in Cornwall's mature scholarship, and analyse the substance of each. The first and second phases, devoted to the analysis of growth and inflation, respectively, reveal the three main cornerstones of Cornwall's macrodynamics: the importance of demand (even in the long run), the importance of instit…
Pricing Behaviour and the Cost-Push Channel of Monetary Policy
This paper examines the empirical and theoretical status of the cost-push channel of monetary policy, according to which interest rates affect the costs of production and hence pricing behaviour. Particular attention is paid to modelling the cost-push channel in a manner consistent with cost-plus pricing theory, which is identified as the canonical model of pricing behaviour in heterodox economics. It is shown that different variants of cost-plus…
The Political Economy of Interest-Rate Setting, Inflation, and Income Distribution
En el texto se analiza el proyecto de política económica que se está ejecutando desde finales de 2018 por el gobierno de México. Es una propuesta que expresamente y según sus propios términos se distancia del neoliberalismo. Es el caso de otros proyectos de gobierno presentes en varios países de la región durante gran parte de la primera década hasta mediados de la pasada del siglo actual. En todos los casos son propuestas específicas que toman d…
Are Functional Relations Always the Alter Ego of Humean Laws
It has recently been suggested in the pages of this journal that ‘functional relations are the alter ego of Humean laws’ (Fleetwood, 2001 Fleetwood, S. 2001. Causal laws, functional relations and tendencies. Review of Political Economy, 13: 201–220. [Taylor & Francis Online] , [Google Scholar], p. 205). Based on the identification of an open-systems, ceteris-paribus (OSCP) approach to formal modelling, it is argued that this claim is true only so…
Is There a Stabilizing Role for Fiscal Policy in the New Consensus
This paper considers the possibility of using fiscal rather than monetary policy as the instrument of stabilization policy in a new consensus framework. Describing the conduct of fiscal policy in terms of a ‘pseudo Taylor rule’, it is shown that fiscal policy is as, if not more, effective than monetary policy as a tool for macroeconomic stabilization. The conclusion reached is that the comparative neglect of fiscal policy as an instrument of stab…
Balancing the Macroeconomic Books on the Backs of Workers
(2006). Balancing the Macroeconomic Books on the Backs of Workers: A Simple Analytical Political Economy Model of Contemporary U.S. Capitalism. International Journal of Political Economy: Vol. 35, No. 3, pp. 46-63
Financial fragility, effective demand and the business cycle
A shifting equilibrium model of effective demand is constructed, in which the state of long run expectations is non‐constant, and is affected by the disappointment of short‐run expectations. It is shown that this model gives rise to cumulative expansions/contractions in nominal income. Changes in the financial fragility of households and firms in the course of these expansions/contractions are then allowed for, together with commercial bank react…
Supply and Demand in the Theory of Long-run Growth
Recent developments in growth theory have encouraged a revisionist interpretation of the field. According to this interpretation long-run growth should be, and always has been, interpreted as a supply-side process. The focus of this symposium is the macro-economics of demand-led growth. As a precursor to the contributions that follow, two central insights of demand-led growth theory are highlighted. First, chronic effective demand problems create…
Separate Identity or Post Walrasian Future
What Is Analytical Political Economy
Since the early 1990s, four conferences have been organized and two volumes of essays published (Dutt 1994a; Setterfield forthcoming) that have brought together contributions to the field of political economy. Contributors to these conferences and volumes of essays have included economists such as Lance Taylor (New School University), Peter Skott (University of Massachusetts, Amherst), and Robert Blecker (American University), whose works are ass…
Economics and the Antagonism of Time
Journal Article Economics and the Antagonism of Time: Time, Uncertainty, and Choice in Economic Theory. Get access Economics and the Antagonism of Time: Time, Uncertainty, and Choice in Economic Theory. By Douglas Vigkers. (Ann Arbor: University of Michigan Press, 1994, Pp. viii + 272. £49.50 hardback. ISBN o 472 10497 7.) Mark Setterfield Mark Setterfield University of Massachusetts, Lowell and Trinity College, Connecticut Search for other works…
A Note on Mark-up Pricing and the
This note shows that a simple mark-up model that treats prices as a fixed percentage mark-up over the actual average cost of labour has misleading distributional implications as product demand varies in the short run. It is demonstrated that using the normal average cost of labour as the basis for simple mark-up models provides a solution to this problem
Historical time and economic theory
This paper explores the relationship between historical time and economic theory. We argue that the pervasive influence of history in determining long run economic outcomes cannot be overlooked, in spite of the tendency of most mainstream economic models to engage in such neglect. A definition of historical time is followed by a review of some previous contributions relating to this concept. The remainder of the paper comprises a survey and asses…
The Political Economy of Interest-Rate Setting, Inflation, and Income Distribution
En el texto se analiza el proyecto de política económica que se está ejecutando desde finales de 2018 por el gobierno de México. Es una propuesta que expresamente y según sus propios términos se distancia del neoliberalismo. Es el caso de otros proyectos de gobierno presentes en varios países de la región durante gran parte de la primera década hasta mediados de la pasada del siglo actual. En todos los casos son propuestas específicas que toman d…
Pricing Behaviour and the Cost-Push Channel of Monetary Policy
This paper examines the empirical and theoretical status of the cost-push channel of monetary policy, according to which interest rates affect the costs of production and hence pricing behaviour. Particular attention is paid to modelling the cost-push channel in a manner consistent with cost-plus pricing theory, which is identified as the canonical model of pricing behaviour in heterodox economics. It is shown that different variants of cost-plus…
Historical time and economic theory
This paper explores the relationship between historical time and economic theory. We argue that the pervasive influence of history in determining long run economic outcomes cannot be overlooked, in spite of the tendency of most mainstream economic models to engage in such neglect. A definition of historical time is followed by a review of some previous contributions relating to this concept. The remainder of the paper comprises a survey and asses…
Balancing the Macroeconomic Books on the Backs of Workers
(2006). Balancing the Macroeconomic Books on the Backs of Workers: A Simple Analytical Political Economy Model of Contemporary U.S. Capitalism. International Journal of Political Economy: Vol. 35, No. 3, pp. 46-63
Supply and Demand in the Theory of Long-run Growth
Recent developments in growth theory have encouraged a revisionist interpretation of the field. According to this interpretation long-run growth should be, and always has been, interpreted as a supply-side process. The focus of this symposium is the macro-economics of demand-led growth. As a precursor to the contributions that follow, two central insights of demand-led growth theory are highlighted. First, chronic effective demand problems create…
Is There a Stabilizing Role for Fiscal Policy in the New Consensus
This paper considers the possibility of using fiscal rather than monetary policy as the instrument of stabilization policy in a new consensus framework. Describing the conduct of fiscal policy in terms of a ‘pseudo Taylor rule’, it is shown that fiscal policy is as, if not more, effective than monetary policy as a tool for macroeconomic stabilization. The conclusion reached is that the comparative neglect of fiscal policy as an instrument of stab…
Financial fragility, effective demand and the business cycle
A shifting equilibrium model of effective demand is constructed, in which the state of long run expectations is non‐constant, and is affected by the disappointment of short‐run expectations. It is shown that this model gives rise to cumulative expansions/contractions in nominal income. Changes in the financial fragility of households and firms in the course of these expansions/contractions are then allowed for, together with commercial bank react…
Managing the discontent of the losers
During the 1990s, social structure of accumulation (SSA) theorists identified the solidification of a neoliberal SSA that included a capital-citizen accord based on ‘managing the discontent of the losers’. This created social stability by reconciling working households to material hardships emanating from the neoliberal labour market by means of either coercion or non-economic distraction. This paper argues that there was, in fact, a material bas…
Inequality, Debt Servicing and the Sustainability of Steady State Growth
We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance. A Kaleckian growth model is modified to incorporate working households who borrow to finance consumption that is determined, in part, by the desire to emulate the consumption patterns of more affluent households. The impact of this behavior on the sustainability of the growth process is then studied by means of a numerical a…
The Cost Channel of Monetary Transmission and Stabilization Policy in a Post-Keynesian Macrodynamic Model
This paper develops a macrodynamic model that takes into account the potentially inflationary consequences of interest rate manipulations through the cost channel of monetary transmission. Evaluations of the macroeconomic implications of the cost channel are common in the mainstream literature. But this literature uses supply-determined macro models and provides standard optimizing microfoundations for the various ways in which the interest rate …
What Is Analytical Political Economy
Since the early 1990s, four conferences have been organized and two volumes of essays published (Dutt 1994a; Setterfield forthcoming) that have brought together contributions to the field of political economy. Contributors to these conferences and volumes of essays have included economists such as Lance Taylor (New School University), Peter Skott (University of Massachusetts, Amherst), and Robert Blecker (American University), whose works are ass…
Historical time and economic theory
This paper explores the relationship between historical time and economic theory. We argue that the pervasive influence of history in determining long run economic outcomes cannot be overlooked, in spite of the tendency of most mainstream economic models to engage in such neglect. A definition of historical time is followed by a review of some previous contributions relating to this concept. The remainder of the paper comprises a survey and asses…
A Note on Mark-up Pricing and the
This note shows that a simple mark-up model that treats prices as a fixed percentage mark-up over the actual average cost of labour has misleading distributional implications as product demand varies in the short run. It is demonstrated that using the normal average cost of labour as the basis for simple mark-up models provides a solution to this problem
Economics and the Antagonism of Time
Journal Article Economics and the Antagonism of Time: Time, Uncertainty, and Choice in Economic Theory. Get access Economics and the Antagonism of Time: Time, Uncertainty, and Choice in Economic Theory. By Douglas Vigkers. (Ann Arbor: University of Michigan Press, 1994, Pp. viii + 272. £49.50 hardback. ISBN o 472 10497 7.) Mark Setterfield Mark Setterfield University of Massachusetts, Lowell and Trinity College, Connecticut Search for other works…
Supply and Demand in the Theory of Long-run Growth
Recent developments in growth theory have encouraged a revisionist interpretation of the field. According to this interpretation long-run growth should be, and always has been, interpreted as a supply-side process. The focus of this symposium is the macro-economics of demand-led growth. As a precursor to the contributions that follow, two central insights of demand-led growth theory are highlighted. First, chronic effective demand problems create…
Separate Identity or Post Walrasian Future
What Is Analytical Political Economy
Since the early 1990s, four conferences have been organized and two volumes of essays published (Dutt 1994a; Setterfield forthcoming) that have brought together contributions to the field of political economy. Contributors to these conferences and volumes of essays have included economists such as Lance Taylor (New School University), Peter Skott (University of Massachusetts, Amherst), and Robert Blecker (American University), whose works are ass…
Financial fragility, effective demand and the business cycle
A shifting equilibrium model of effective demand is constructed, in which the state of long run expectations is non‐constant, and is affected by the disappointment of short‐run expectations. It is shown that this model gives rise to cumulative expansions/contractions in nominal income. Changes in the financial fragility of households and firms in the course of these expansions/contractions are then allowed for, together with commercial bank react…
Balancing the Macroeconomic Books on the Backs of Workers
(2006). Balancing the Macroeconomic Books on the Backs of Workers: A Simple Analytical Political Economy Model of Contemporary U.S. Capitalism. International Journal of Political Economy: Vol. 35, No. 3, pp. 46-63
Are Functional Relations Always the Alter Ego of Humean Laws
It has recently been suggested in the pages of this journal that ‘functional relations are the alter ego of Humean laws’ (Fleetwood, 2001 Fleetwood, S. 2001. Causal laws, functional relations and tendencies. Review of Political Economy, 13: 201–220. [Taylor & Francis Online] , [Google Scholar], p. 205). Based on the identification of an open-systems, ceteris-paribus (OSCP) approach to formal modelling, it is argued that this claim is true only so…
Is There a Stabilizing Role for Fiscal Policy in the New Consensus
This paper considers the possibility of using fiscal rather than monetary policy as the instrument of stabilization policy in a new consensus framework. Describing the conduct of fiscal policy in terms of a ‘pseudo Taylor rule’, it is shown that fiscal policy is as, if not more, effective than monetary policy as a tool for macroeconomic stabilization. The conclusion reached is that the comparative neglect of fiscal policy as an instrument of stab…
The Political Economy of Interest-Rate Setting, Inflation, and Income Distribution
En el texto se analiza el proyecto de política económica que se está ejecutando desde finales de 2018 por el gobierno de México. Es una propuesta que expresamente y según sus propios términos se distancia del neoliberalismo. Es el caso de otros proyectos de gobierno presentes en varios países de la región durante gran parte de la primera década hasta mediados de la pasada del siglo actual. En todos los casos son propuestas específicas que toman d…
Pricing Behaviour and the Cost-Push Channel of Monetary Policy
This paper examines the empirical and theoretical status of the cost-push channel of monetary policy, according to which interest rates affect the costs of production and hence pricing behaviour. Particular attention is paid to modelling the cost-push channel in a manner consistent with cost-plus pricing theory, which is identified as the canonical model of pricing behaviour in heterodox economics. It is shown that different variants of cost-plus…
Macrodynamics for a Better Society
John Cornwall devoted his career to advancing macroeconomics with a view to improving the societies in which we live. We identify three distinct phases in Cornwall's mature scholarship, and analyse the substance of each. The first and second phases, devoted to the analysis of growth and inflation, respectively, reveal the three main cornerstones of Cornwall's macrodynamics: the importance of demand (even in the long run), the importance of instit…
The Remarkable Durability of Thirlwallâ s
The Cost Channel of Monetary Transmission and Stabilization Policy in a Post-Keynesian Macrodynamic Model
This paper develops a macrodynamic model that takes into account the potentially inflationary consequences of interest rate manipulations through the cost channel of monetary transmission. Evaluations of the macroeconomic implications of the cost channel are common in the mainstream literature. But this literature uses supply-determined macro models and provides standard optimizing microfoundations for the various ways in which the interest rate …
Inequality, Debt Servicing and the Sustainability of Steady State Growth
We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance. A Kaleckian growth model is modified to incorporate working households who borrow to finance consumption that is determined, in part, by the desire to emulate the consumption patterns of more affluent households. The impact of this behavior on the sustainability of the growth process is then studied by means of a numerical a…
Intermediation, Money Creation, and Keynesian Macrodynamics in Multi-agent Systems
This paper offers a simple computational model of monetary creation, derived from individual agent behavior, that provides additional support for the well-known and more or less universally accepted idea that money creation is inevitable in demand-driven Keynesian economies. The endogeneity of money is linked to asynchronous production, in which investment is set autonomously by a combination of animal spirits and capacity utilization, while savi…
Managing the discontent of the losers
During the 1990s, social structure of accumulation (SSA) theorists identified the solidification of a neoliberal SSA that included a capital-citizen accord based on ‘managing the discontent of the losers’. This created social stability by reconciling working households to material hardships emanating from the neoliberal labour market by means of either coercion or non-economic distraction. This paper argues that there was, in fact, a material bas…
Whatever Happened to the ‘Goodwin Pattern’? Profit Squeeze Dynamics in the Modern American Labour Market
The 'Goodwin pattern' -- an anti-clockwise rotation in real activity x wage share space recurring at intervals that correspond roughly to the duration of business cycles -- is an enduring feature of high-frequency dynamics in capitalist economies. It is well known that the centre or focus of this rotation shifts over time. More recently, however, the Goodwin pattern seems to have broken down, the wage share no longer increasing as the real econom…
Capitalism, Inclusive Growth, and Social Protection
After more than four decades of real income stagnation, ever-increasing inequality and household financial distress, this book explores how the very fabric of our society is under threat. It argues that although capitalism is imperfect, it can be improved, and harnessing its forces of production to more suitable social relations of production is key to that improvement.
Animal Spirits and the Goodwin Pattern
Managing the Discontent of the Losers Redux
Neoliberalism eviscerated the value-sharing ethos of the postwar golden age (1945-1973), seeking to maintain social cohesion in civil society by "managing the discontent of the losers": reconciling working households to the realities of the neoliberal labor market by means of coercion, distraction, and debt accumulation (the last serving to limit the growth of consumption inequality in the face of burgeoning income inequality). The global financi…
Economics (20 works) · Economic Theory and Policy (14 works) · Macroeconomics (10 works) · Political Economy and Marxism (10 works) · Neoclassical economics (9 works) · Economic theories and models (8 works) · Economic Theory and Institutions (8 works) · Political science (8 works) · Law (6 works) · Monetary economics (6 works)