INDEX

acceptance function 29 accumulation 97-8, 99, 102, 103, 104, 107

Adelman, Morris 189

adjustable rate subprime mortgage 15 agrarian reform movement 233, 234 agricultural production 100

agricultural sector 75

agricultural surplus 73, 75-6, 77-8, 84 alpha returns 13

alternative economic theorizing 2-3 alternative methods of production 121, 125 Alvarez Guerra, Juan 230

Ampang Tin 176

Ampat Tin Dredging 177

Anglo-Oriental Mining Corporation 176, 177-8, 184

Another Essay on Political Arithmetick 76 artificial wealth 74

Associated Tin of Nigeria 177 asymmetric powers 26

Autobiography (Mill) 46, 55, 57

Azara, Nicolas de 230

bail-in 22

bail-out 22

balance of payments 74

balance of trade theory 74, 75, 83

Ball, Jim 93

Bandoeng pool 168

Barbon, Nicholas 75, 99, 101

barriers to entry and exit 12

Basel Committee of Bank Supervision (BCBS) 23, 24

Bentham, Jeremy 46, 48, 53, 57, 233

Berlusconi, Silvio 210

Bertin, Henri 82

best practices 23, 24

Bharadwaj, Krishna 89

Biagi Law of 2003 211

Bibliotheque de l'homme 224

Bielfeld, Jakob Friedrich 225, 233, 235

Blanchard, Olivier 213

Blanqui, Jerome-Adolphe 231

Bleaney, Michael 97

Boisguilbert, Pierre le Pesant 97

Boutelou, Esteban 230

Bretton Woods system (BWS) 21, 26, 40-1

British Metal Corporation (BMC) 184

British Tin Corporation 184

British Tin Investments (BTI) 177, 178

Brouwer's fixed point theorem 156 budget constraint 160 buffer-stock schemes 182 business cycles 98, 99 buyer of last resort 16 buyer's option to double (BOD) 170-2

call market 12

Cambridge controversies 13, 153 Campomanes, Conde de 228

Campos, Ramon 230

Canard, Nicolas-Franyois 100, 229, 234, 235 Cantillon, Richard 77-8, 97, 225, 229, 235 capital accumulation 3, 62, 102, 130 capital formation 153, 154

capital goods 154-5, 157-8, 160

Capitalism, Socialism and Democracy 12

Cartel Party 36

Cary, John 99

Cazenove, John 101

Censo de frutos y manufacturas de Espana e islas adyacentes 225

Chalmers, Thomas 101

Changkat 177

Churchill, Winston 34

Cienfuegos, Nicasio Alvarez de 230

Classical liberalism 45

Classical political economists 47, 55, 73, 130

Classical political economy 57, 79, 81 clearing union 28

Clinton, Hillary 38

Clower, Robert 160

coal question 189 collateralized mortgage assets 14 collective bargaining 211, 216-17 commodities 7, 8, 9, 11, 77, 121, 132-5, 181, 191-2

Compendia (Esquisse) 224 competitive market 11-12

Condillac, Etienne Bonnot de 225, 229, 230, 233, 234

Condorcet, Marquis de 224 confidence 4

Consejo de la Inquisicion 229 consequentialist approach 46 consumption goods 157 contestable markets 25 contractual flexibility 189-90 convergence 84 corn model 73

Cortes Extraordinarias 226

creative destruction 12

Cunynghame, Henry 114, 115

Daal, Jan van 154

Danvila, Bernardo 225 De la Democratie en Amerique 50 degrees of freedom 27 democratic crisis 34 deregulation 21

Diario de Madrid 233 Diccionario de Agricultura 230 distribution of income 38 diversity 11

division of classes 64

division of labor 62-5, 83, 84, 97, 228 Domergue, Lucienne 229

Earl of Lauderdale 100-1

Eatwell, John 92, 153, 156, 159 economic growth 37, 74, 82

Economic Principles 235 Edict of February 1776 69 effective demand 196

Egerton, Francis Henry 223

Eichner, Alfred 93

Einaudi, Luigi 9

El Mercurio de Espana 234 Elementary Compendium 235 Elements of Political Economy 122 End of History 37, 38 entrepreneur 78 equality 33

Essai sur la Nature du Commerce en General 77

Essay, political, economical and philosophical 233

European Commission (EC) 39, 205

European Competitiveness Report 214

European Parliament 39, 40

European social model 38

European Union 38-40, 41, 42, 209, 212 evolutionist theory 53

exchange 8-9, 10

expansionary austerity 202 expectations 3

external imbalances 26

fallacy of composition 16, 22

federalism 56

financial deregulation 21, 27, 37 financial fragility 27

financial innovation 13-14

financial regulation 21, 28

financialization 28

Fiscal Compact 209-10, 214

fiscal consolidation 202-3, 217

fixed capital 80, 117

Fordist-Taylorist industrialization 41

Fornero Law of 2012 211, 213

Foronda, Valentin de 224

Fortrey, Samuel 99

Foster, Richard 12, 15 fraternity 35, 39, 63 free market 9, 11

Free Thinkers 99, 100

Fukuyama, Francis 37

full employment 20, 93, 156, 161, 163 fundamental price 82

Ganilh, Charles 101

Garegnani, Pierangelo 89, 91, 130-1, 135, 153, 154, 156, 159

Garnier, Germain 226, 227-8, 229, 231, 234, 235

Gayangos, Pascual 223

General Theory 90, 182

General Tin Investment Ltd.

Genovesi, Antonio 225, 229, 235

Gerando, Joseph Marie de 230

German Historical School 47 globalization 26, 27, 36, 38, 40 gluts 99, 102, 103 gold standard 40, 174

Goodwin, Richard 91, 93, 94

Grampp, William 236

Gramsci, Antonio 139

Great Recession 38

Great Thinkers in Economics 89

growth cycles 94

Guerra, Juan Alvarez 230

Haberler, Gottfried von 98, 99 happiness 46-7

Harris, Donald 91-2

Hart, Neil 90

Hayek, Friedrich 98

Herrenschwand, Jean 227, 229, 231-2, 233 Histoire de l'Economiepolitique 231 hoarding 99

Hollander, Jacob 97

Hollander, Samuel 106

Hotelling’s rule 190, 193, 194 Howeson, John 176, 177 human capital 106, 107, 211

Humboldt, Felix Lund Wilhelm von 51 Hume, David 225

Ibarra, Eduardo 223 idiosyncratic risks 14 imaginary money 9 imaginary prices 16 immigration 40 inequality 33, 62, 63-5

Informe sobre las fabricas e Industria de

Espana 226-7

innovation 215

input-output matrix 157, 228 instability 3, 93

Institucionespolιticas 233, 235

intellectual labor 104 interbank lending 15

International Labour Organization (ILO) 202 International Monetary Fund (IMF) 26-7 International Tin Agreement of 1931 177 International Tin Committee (ITC) 168 International Tin Control Scheme (ITCS) 168 International Tin Pool 169, 177

Interrogatorio a lospueblos de Espana 225 invisible hand 21, 48

Iriarte, Bernardo de 223, 226

Jevon’s law of the unique price 194

Jobs Act 212-14

Jovellanos, G.M.

Kahn, Richard 163

Kalecki, Michal 91, 93

Katz, Richard S. 36

Kenyon, Peter 93

Keynes, John Maynard 16, 19, 20, 26, 27, 28,

90, 91, 93, 98, 99, 117, 140, 167

Knight, Frank 20

Kramat Pulai 174

L’Averdy, Franyois de 82

La Decade philosophique, litteraire etpolitique

229, 230

La Economica reducida a principios exactos, clarosy sencillos 224

labor flexibility 214

labor income share 203, 211

labor market flexibility 211

labor productivity 83, 215

labor theory of value 77, 78, 92

labor theory of wealth 77

Laffemas, Bartholomew 99

laissez-faire 20, 24, 26

Larruga, Eugenio 225

Las reflexiones sobre las variaciones delprecio del

trigo 234

Lauderdale 105

Lecciones de Economia Civily Comercio 225

Lectures on the Stock Exchange 181

lender of last resort 16, 26

Leontief, Wassily 94

Letta, Enrico 210

Lettresperuviennes 62, 63

liberal socialism 45, 55

limits to growth 189

Llombart, Constant! 236

Lluch, Ernest 234

Locke, John 229

London Interbank Offered Rate

(LIBOR) 15

London Metal Exchange (LME) 169

London Tin Corporation 177, 178, 184

luxury 99, 100, 103, 107

Lyttelton, Oliver 177, 178, 183-4

Maastricht Treaty 38

Mably, Gabriel Bonnot de 229, 233 macroprudential regulation 22, 28 Mair, Peter 36

Malayan Tin Dredging Co. 174

Malinvaud, Edmond 163

Malthus, Thomas 98, 101-3, 105, 106-7

Malynes, Gerard de 74

Manchester Guardian 139

Mandeville, Bernard de 99, 101

Marat, Jean-Paul 231 marginal utility theory 121 market fundamentalism 7 market mechanisms 7-8 market price 10, 82 market-friendly regulation 23

Marshall, Alfred 12, 67, 89-90, 91, 116, 130 Marx, Karl 91-2, 98, 116, 130 mature economies 41

Maximes generates du gouvernement economique d’un royaume agricole 81

McCloskey, Deirdre 52 means of production 81 mechanization 97

Meek, Ronald 106 Melon, Jean-Franςois 225 mercantilism 74-5, 76, 78

Mercurio de Espana 234

Michels, Robert 37 microprudential regulation 27, 28

Mill, James 49, 97, 104, 106

Mill, John Stuart 191 Minsky, Hyman P.

100, 228

Misselden, Edward 75 money 9, 21, 117 Monti, Mario 210 Morishima, Michio 154, 158

Mun, Thomas 74

natural costs 123 natural prices 90, 124 natural rate of profits 90 natural rate of wages 90 natural wealth 74 necessary commodity 134-5, 136, 141, 146 necessary price 124 Nemours, Dupont de 231 neoliberal restoration 41 neoliberal system 38 normal prices 90, 153 normal profit 153-4

Normante, Lorenzo 225 Nouveaux principes 103

oil question 189-90

On Liberty 45, 47, 48, 50

ordo-liberalism 40

Organisation for Economic Co-operation and Development (OECD) 201, 213

Ortiz, Jose Alonso 233 Owen, Robert 104-5

Paglin, Morton 105 Pahang Consolidated Company 174 Pantaleoni, Maffeo 113, 120-1 partial equilibrium theory 115 Pasinetti, Luigi 89

Patino, Antenor 176 pay for participation model 216 Penalver, Juan Lopez de 234-5 perfect competitive market 11-12 period of production 117-19 Petty, William 10, 73, 75-7, 99 physical cost approach 122 physical real costs 132-3, 134 physiocracy 79, 81-2 physiocrats 81, 227-8

Plan for a Discourse on Universal History 64 pluralism 51, 56

Poletti, Giuliano 214 Polo y Catalina, Juan 223 Popper, Karl 52 populism 37 Porta, Pier Luigi 89 post-democracy 34 preferences 8 price of production 90, 124, 195-6 price swings 181 price theory 91 primary sector 79

Principes d’economiepolitique 233, 234 Principii di economia pura 120

Principios de Economia Politica 231, 232, 233 private wealth 100

Production of Commodities by Means of Commodities 73, 89, 129, 134, 191

productive consumption 101 public wealth 100

Queipo, Jose 235 Quesnay, Francois 79-82, 97, 100 Quintana, Manuel Jose 230

Ranieri, Lewis 14 rational expectations 13 real wages 206

Reflexions sur la formation et la distribution des richesses 62, 63, 65-7

regulatory requirements 28 relative prices 116, 119 rent 28, 81, 102, 105, 190

Renzi, Matteo 210, 214 representative democracy 35

Republican Party 38

Ricardo, David 91, 98, 101, 102, 103,

105, 106-7

risk weights 24

Robertson, Dennis 93

Robinson, Joan 91, 92

Rodπguez, Pedro 224

Ropp Tin Company 176

Rozier, Jean-Baptiste Francois 230

rule utilitarianism 47, 51

saving 105, 156

Say, J.

Say's law 98, 101, 102, 103, 104-5, 106-7 scarcity 190

Schmoller, Gustav von 47

Schumpeter, Joseph 12, 35, 67, 98

Scott, Francis 183

seller's option to double (SOD) 170 Semanario de Agriculturay Artes 233 Sen, Amartya 46

Simons, Henry 20, 27

Sinha, Ajit 90

Sismondi, Jean Charles Leonard Simonde de

98, 103, 106

Smith, Adam 8, 47, 48, 55, 57, 83-4, 91, 97,

99, 100, 101, 103, 104, 224, 229, 235

Smith, Robert Sidney 224, 235

social classes 102

social costs 123

social division of labor 76

social education 47, 56

social wealth 103

Sociedades Economicas de Amigos del

Pais 227

Southern Kinta Consolidated 177-8

Southern Perak 174

sovereignty 35, 36, 39-40

Special Memoranda on Stocks of Staple Commodities 170, 181

specialization 62, 69, 83, 227, 228 speculation 181-2

Spence, William 97, 100, 104 spending 106

spurious margins 124

Sraffa and the Theory of Prices 113

Sraffa prices 91, 92, 93, 158

Sraffa, Piero 7, 13, 73, 189, 190 Sraffa's equations with land 192-3 Sraffa's equations with oil 193-4 Sraffa's price equations 191, 196 stagnation 100 stationary state 98 Steuart, James 234 subprime crisis 15 subsistence level 102 substitution effect 12 surplus 64, 73, 76, 78, 80, 91 surplus approach 81 Sustainable Development Goals 85 Sylos Labini, Paolo 25, 42, 50, 53, 89 sympathy 47-8 System of Logic 52 systemic constraints 83

Tableau Economique 129, 228 Tasca, Angelo 139 tax reform 81, 212 taxation 55

Taylor, Harriet 55 technical change 91, 92 technical progress 66, 79-80, 102,

103, 104-5

Teja Malayan Tin Dredging 176 Terray, Joseph Marie 82 The General Theory 91, 93

The New Palgrave Dictionary of Economics 153, 154

The Wealth of Ideas 10, 45 Theorie de l’Impot 81, 82 Theories of Surplus Value 130 theory of capital 153 theory of distribution 153 theory of investment 194 Theory of Moral Sentiments 8, 48 theory of pricing 90 theory of production prices 191 theory of value 115-16, 117, 130 theory of value and distribution 121-3, 125, 190

theory of wealth 73, 76, 80-1 Thirlwall, Tony 89 Thompson, Benjamin 230 three rents theory 78

thrift 100

Tin Buffer Stock Scheme (1934) 169 Tin Producers Association 168 Tocqueville, Alexis de 50, 56

too-big-too-fail 22

Torrens, Robert 103, 104, 105

Tract of Monetary Reform 182

Tracy, Destutt de 230

Traite 231

Traite d'economie politique 227, 233, 234

Tratado sobre la industria de Espana 229, 233

Treatise of Probability 181

Treatise of Taxes and Contributions 75, 76

Treatise on Money 182

Treaty on Stability, Coordination and

Governance 209

Treu Law of 1997 211

Triffin, Robert 26

Trump, Donald 38

Tsuda, Takumi 61

Turgot, Anne-Robert-Jacques 82

tyranny 50

unbundling 14

uncertainty 4, 91, 181 unemployment 156, 162, 163, 201-2,

206, 213

uniform rate of profits 90

uniformity 8, 9, 11, 15-16

Union Corporation 183

unit labor cost 204, 205

unit of account 9

unproductive activities 227

unproductive consumption 97, 101

utility 8, 46

Variedades de Ciencias, Literaturay Artes 230

Veblen, Thorstein 51

von Schrotter, F.W.

wage competitiveness 203, 205-6

wage curves 157

wage deflation 204

wage levels 102

Walker, Donald 154

Walras equation 161

Walras, Leon 12, 14, 154, 159

Walras’ law 155, 160-1

Walras-Morishima model 154, 159-60

Washington Consensus 27

wealth 65, 74, 76, 77, 78, 82, 84

Wealth of Nations 8, 48, 76, 83-4, 224, 226,

227, 233, 234

Weierstrass, Karl 161

Wicksteed, P. H. 124

Wood, Adrian 93

worker’s rights 203

working capital 66, 117

Young, Arthur 230, 231, 233

Yriarte collection 223

Zaragoza society 225

2. The Two 1930s Misleading Approaches

Originally the underconsumption approach refers to a long-term, structural process that involves the nature of capitalist accumulation.² But in the 1920-1930s, an interpretation prevailed that considered underconsumption as connected to the trade cycle, that is, to a short-term process.³

Haberler was appointed by the League of Nations to investigate the nature of eco­nomic crises. Not surprisingly, he discards as simplistic the view that business cycles were due to underconsumption, but he does not distinguish between the two processes (Haberler, 1937, 118ff). All the leading figures of that period share his approach, from Joseph Schumpeter to Friedrich Hayek, Lionel Robbins and so on, and Keynes (1936,