This paper argues that the new “keynesian macroeconomics” presents some weak points by ignoring the long-run effects of aggregate demand on the working of the economic system. In order to introduce this reality, the paper shows that it is necessary to define the relationships between real wage and unemployment in a manner that sheds light on the crucial policies of employment and growth. This is done by introducing an investment function which makes possible to determine different long run paths for the economy according to the state of the “animal spirits” of the entrepreneurs.
The present paper discusses the nature and the conditions of stabilization plan in democratic societies, criticizing the technocrats approach that reduces those plans to a mere technical decision, this hiding their social consequences and implications in terms of gains and losses. The inefficacy of orthodox and heterodox plans from in recent years said to be due to their lack of clarity, politics and legitimacy. A stabilization program cannot be left in the hands of market or cannot be resumed to a fiscal adjustment and monetary restrictions, but must have income policies, introduced by the State and with the active participation of social classes. The experience of the sectorial chambers in certain branches of industrial activities harbours an insight towards a new mechanism of coordination of prices, wages and public prices, that can slow down that inertial inflation and keep price increase in Brazil under control.
The budget bill spells out the key functions of government. Once passed into law, its implementation assures the provision of public services, the minimization of social injustice, and the search for full employment with inflation under control. This article begins by outlining the historical origins of national budgeting, stressing the evolution and systematization of the process as nations develop. Brazil’s budget legislation is described starting with the 1969 constitution. Moving on to the 1988 constitution (in force), the prolixity and inconsistency of the chapter on public finance are criticized. The Brazilian budgetary process is shown to be excessively fragmented, with three separate but overlapping pieces of legislation — the Budget Guidelines Act (Lei de Diretriz Orçamentária), the Federal General Budget and the Multiyear Plan. It is concluded that efficacy and transparency could be enhanced by merging all three into a single act.
Mathematics is a general and logical capital good for the construction of empirical science. Pure empirical science (e.g. Theory of the Firm) is a logical but specific capital good for the construction of applied empirical science. The latter (Corporate Strategy as a corresponding example) is a dialetical and specific capital good for the improvement of the art of science. The complementarity among these distinct spheres of knowledge is obvious. It is however obscured by the economists’ Ricardian Vice. A study of Ansoff’s work — he is the chief protagonist of the Theory of Corporate Strategy — is conducted under this perspective.
A neoclassical growth model with failure in the labor market and positive externa-lities accruing from rising capital intensity is presented. This model is used to support the structuralist hypothesis that rising real wages may have a positive effect on GDP growth. The model also challenges the orthodox conclusion that higher propensity to save necessarily leads to higher rates of GDP growth.