Alain Parguez Website  © Alain Parguez 2004    Home     Personal data     Foreword      Publications      News


 For the more recent publications look at the News
A first set of contributions is devoted to the general theory of the monetary circuit (TMC)
in its most abstract form.

- Comments on Bruno Trezza's "Effective                                                    Comment :
Demand and Cash Requirements in a                               What is at stake, in this contribution is the integration of firms'
Monetary Economy" - May 2003                                       desired working capital generated by their profits in excess over
Paper presented at the conference in honour                                             their investment. It reflects their net "monetary saving"; its sole
of Augusto Graziani organized by the Italian                                             sources are either the state deficit, household net increase in their
Center for Philosophical Studies, Naples                                                   debt to banks (or both)

-The destabilizing impact of the new monetary                                            Comment :
structure of Capitalism - April 2001                                 In this contribution, it is proven that financial markets cannot be    Paper presented at the seminar on contemporary financial              substituted for banks as the source of initial finance for firms
Economy organised by the Institute for Economic Studies                     (and the State). They just reflect a dangerous increasing
Universidad Nacional Autonoma de Mexico (UNAM)                       roundaboutness of the monetary structure

- Money and Credit in Contemporary Capitalism                                           Comment :
December 2001                                                                    In this contribution, starting from an historico-logical introduction
It is the english version I wrote of my contribution to the book               opposing the Essential Money Economy to Non Monetary Economies,
to be published in spanish (forthcoming in March 2004)                         the core characteristics of contemporary capitalism are spelled out.
Economia Financiera Contemporeanea Vol I, edited by                         They include the absence of constraint on the State ability to spend
Eugenia Correa and Alicia Giron.                                                                 and the law of deficits: The sum of deficits of all sectors is zero.

- The misleading issue of the Non Neutrality                                                  Comment :
of Money : The Theory of Unemployment                                  In this contribution, it is proven that the source of unemployment
in the Monetary Economy - March 2001                                     is not the existence of money but the very failure of the Capitalist
Paper presented at the conference on Endogeneous Money:                    Economy. The non neutrality of money is not a relevant issue. Being
Theory and policy, organised at the Free University of Berlin                the existence condition of the system, money is obviously non-neutral.
by Victoria Chick and Karl Betz

- The Monetary Theory of Public Finance                                                       Comment :
Paper presented at the sixth International Conference on                       Here in is the full proof of the irrelevance of the State Budget
Post Keynesian Economics organised by the Center for                          constraint. It is proven that taxes cannot provide initial finance
Full Employment and Price Stability and the Journal of                          for the State. State outlays generate an equal creation of money
Post Keynesian Economics - Knoxville Tennessee June 2000              through the relationship between the spending aspect of the State
                                                                                                                            (Treasury) and its banking aspect (Central Bank). Taxes are part
                                                                                                                            of the reflux (final finance) : they destroy an equal amount of money.

- John Maynard Keynes : The search of an                                                       Comment :
Economy without Scarcity - June 1999                                      In this paper, it is proven that the legacy of Keynes is the effort to
It is the english version I wrote of an article published in                 debunk the existence of a scarcity constraint resulting from saving.
spanish in the mexican review : Comercio Exterior                                It is also proven that his theory of money fully contradicts the core
                                                                                                                            principles of the TMC. He is not (cannot be) a precursor of the TMC.

A second set of contributions is addressing the Policy implications of the TMC or the General Theory of Economic Policy.

- The paper I have presented at the eighth International Conference on Post Keynesian Economics organised by the Center for Full Employment and Price Stability and the Journal of Post Keynesian Economics
June 29-July 3 2004 under the title : "A Genuine Full-employment Policy in a fully globalised economy or why globalisation is a unique opportunity and not a Strait-Jacket"

- Far Beyond Keynesian Fiscal Policy :                                                            Comment :
The Prerequisites of a Genuine                                                     It could be read as the logical sequel of [ I ] and  [ II ]. It is proven
Full Employment Policy                                                                    that the usual defense of activist fiscal policy hides six postulates
Paper presented at the 30th session of the Eastern Economic                including that private managers do not take care of the future, which
Association Washington February 2004                                                    collides with the Principle of Minimum Survival Constraint, and
                                                                                                                             therefore with minimum rationality. It is explained therefore why
                                                                                                                              bastard Keynesian anti-cyclical policies are doomed to fail.

- [ I ] The tragedy of Fiscal Disciplinary Economics                                        Comment :
or back to the ancient regime                                            Herein is the rigorous proof that what is deemed, the progressive way
Paper presented at the 29th session of the Eastern Economics             of austerity imposing an equal growth of state outlays and taxes, is
Association New-York February 2003                                                       doomed to fail. It collides with the dynamic principles of the capitalist
                                                                                                                            economy. It leads to a crisis generated by the growth of the tax burden
                                                                                                                            afflicting private wage-earners.

- [ II ] The Paradox of Disciplinary Fiscal Policy                                              Comment :
in Contemporary Capitalist economies                             In this contribution, I addressed for the first time the paradox which has
Paper presented at the seventh International Post Keynesian               been ignored (or had just been paid lip service) :
Conference organized by the Center for Full Employment and             Since the State "deficit" generates an automatic rise in profits earned
Price Stability, and the Journal of Post Keynesian Economics             by domestic firms (as part of the increase of the private sector net
University of Missouri at Kansas City, June 29-July 3 2002                saving), why are private managers so stalward defenders of the
                                                                                                                           commandments of fiscal discipline?
                                                                                                                           It is my first attempt to provide a rational more convincing that the
                                                                                                                           usual explanations by Post Keynesians and heterodox economists.

- The dangerous Greenspan Myth or why Central                                              Comment :
Banks, even the Fed, cannot stop a crisis                                  It is proven that monetary policy alone cannot sustain growth and
Paper presented at the workshop on the limits of Central                      therefore cannot prevent or stop an impending crisis. Too much
Banking organized by the Center for Full Employment and                   emphasis has been bestowed on the role of Central Banks. What
Price Stability, and Warren Mosler - West Palm Beach                        is lacking in both orthodox and heterodox defense of monetary
March 19-20 2001.                                                                                         policy is a genuine theory of both the nature of interest rate and
                                                                                                                            its role.

A third set of contributions addressing specific issues of Economic Policy :

a/ On the direct role of the State in Full Employment Policy :

- The State as Employer of Last Resort policy                                                      Comment :
within a Circuitist Framework                                                   This contribution was a systematic attempt to find a rationale
Paper presented at the sixth International Conference on Post                for the policy emphasizing the necessity for the State to provide
Keynesian Economics organized by the Center for Full Employment      direct jobs at a given living wage to those who cannot find a job
and Price Stability, and the Journal of Post Keynesian Economics.        within the private sector and cannot (or do not want) benefit from
Knoxville, Tennessee, June 27-June 30 1998                                             a social compensating income.
                                                                                                                               A more elaborate proof can be found in the first and third documents
                                                                                                                               on this page.

b/ On the false problem of a shortage of funds to finance future pensions :

- A Note on pensions May 2003                                                                             Comment :
                                                                                                                        In which it is proven that there cannot be a shortage of funds to
                                                                                                                                finance pensions, it is as though one believed that there could be
                                                                                                                                a lack of funds to finance wages and salaries. The so much feared
                                                                                                                                "deficit" of the Pensions system cannot matter.

c/ On the European Monetary Union and its underlying Economics :

- Le modèle Européen de l'Union Monétaire :                                                       Comment :
L'Harmonisation par l'Austérité                                                          In which it is explained the fundamental logic of the Euronomics
Paper presented at the seminar "Coordination, Power                                 By simultaneously depriving member States of their monetary
and Regional Monetary Systems" organized by the Center                         power and forcing on them the strait-jacket of the Growth and
For Studies of Economic Thought and Economic Systems.                           Stability Pact monitored by the Commission and the ECB, it
University of Grenoble Pierre Mendès France,                                               aims at harmonisation of economic and social policy within the zone.
Grenoble France, November 2002.                                                                    It is indeed a very dangerous way of imposing harmonisation.

- For whom Tolls the Monetary Union :                                                                 Comment :
Three lessons from the European Monetary Union                   Written in English it is a much more developped version of the
Paper written for the International Conference on Monetary Union            paper above presented in Grenoble, emphasizing the long run
University of Ottawa, October 2000                                                                   historical roots of the European Monetary Union going back to
                                                                                                                                   the 30's of the twentieth century. What was at stake was to
                                                                                                                                   deprive the State of any degree of freedom in economic and social
                                                                                                                                   policy. Herein is the intrinsic fundamental logic of the Euronomics.

For a pleasant approach of Money and the Laws of Finance don' t miss the dialogues in the foreword