The journal Estudios Críticos del Desarrollo has a new issue (in Spanish) on Raúl Prebisch. Below the abstract for the paper co-authored with Esteban Pérez Caldentey on Prebisch and Keynes.
Keynes had a profound influence on Prebisch, not only in terms of his diagnosis of the main failures of market economies, but also on the need to pursue pro–active and anti–cyclical policies. However, Prebisch was critical of Keynes’ most important publication, The General Theory of Employment, Interest and Money (1936). He viewed this work as being removed from the reality of capitalist economies. He also argued that it was inconsistent and did not represent at all a break with conventional wisdom. Prebisch’s criticisms focused on the theory of interest and the multiplier. Prebisch’s attitude in relation to Keynes can be explained by a difference in the object and method of analysis. The former’s interests focused on dynamics and cycles, themes that were peripheral to the central message and analysis of The General Theory. Notwithstanding Prebisch’s criticisms, there are several similarities between his analysis and that of Keynes.
So besides the coup in Brazil (which was all but confirmed by the last revelations, if you had any doubts), and the electoral victory of Macri in Argentina, the crisis in Venezuela is reaching a critical level, and it would not be surprising if the Maduro administration is recalled, even though right now the referendum is not scheduled yet.
The economy in Venezuela has collapsed (GDP has fallen by about 14% or so in the last two years), inflation has accelerated (to three digit levels; 450% or so according to the IMF), there are shortages of essential goods, recurrent energy blackouts, and all of these aggravated by persistent violence. Contrary to what the press suggests, these events are not new or specific to left of center governments. Similar events occurred in the late 1980s, in the infamous Caracazo, when the fall in oil prices caused an external crisis, inflation, and food shortages, which eventually, after the announcement of a neoliberal economic package that included the i…
Another end of the world is possible
There will be a lot of postmortems for the European Union (EU) after Brexit. Many will suggest that this was a victory against the neoliberal policies of the European Union. See, for example, the first three paragraphs of Paul Mason's column here. And it is true, large contingents of working class people, that have suffered with 'free-market' economics, voted for leaving the union. The union, rightly or wrongly, has been seen as undemocratic and responsible for the economics woes of Europe.
The problem is that while it is true that the EU leaders have been part of the problem and have pursued the neoliberal policies within the framework of the union, sometimes with treaties like the Fiscal Compact, it is far from clear that Brexit and the possible demise of the union, if the fever spreads to France, Germany and other countries with their populations demanding their own referenda, will lead to the abandonment of neoliberal policies. Aust…