International Conference Sraffa's Production of Commodities by Means of Commodities 1960-2010.
2nd-4th December 2010, Roma Tre University, Faculty of Economics
First Second
Comment: From John
Answer
of Ciccone
Abstract This article deals the issue of public debt within a different theoretical context that prevails today both in terms of pure theory or in applications to concrete problems.
In particular, the approach adopted here is based on two fundamental premises, which are closely linked. The first is the classical explanation "of the distribution of income in terms of social and institutional circumstances, and therefore the rejection of the determination of the distribution in terms of forces of supply and demand which is characteristic of the dominant theory various formulations.
The second premise is the idea that long-term levels of production are determined, no less than its fluctuations, by the size of aggregate demand, the ultimate determinants of which are conceived as independent of the production potential of the economy
The specific objective of the work is to reconstruct, in the theoretical framework outlined above, some basic relations and proposals on the effects in the economic system of government deficit spending and debt. Since a crucial role in the work is obviously played by the admitted influence public spending on aggregate demand, and therefore the level of income, the paper also discusses some of the arguments in the literature are used to maintain this influence is small or even negative.
Although there is an obvious link with the literature of functional finance the 40 and 50, a distinguishing feature of this analysis is that demand openly conceived as a determinant of total production in the long (and short) term, while early work left in general, without specifying whether the limits of demand had permitted purely circumstantial, or if extended to the trend of economic activity
Ciccone previous Paper on the subject in English at the Circus 3
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