Thomas Palley
Encyclopedia
Thomas Palley is a United States
-based economist
who has served as the chief economist for the US – China Economic and Security Review Commission. He is currently Schwartz Economic Growth Fellow at the New America Foundation
.
. Palley founded the Economics for Democratic & Open Societies project. He states its purpose to open "discussion about both the form of economic arrangements and the conditions are might best promote democracy and an open society." Palley's previous positions include director of the Open Society Institute
’s Globalization Reform Project, and Assistant Director of Public Policy for the AFL-CIO
.
His work has covered macroeconomic theory and policy, international finance and trade, economic development, and labor markets where his approach is Post Keynesian
.
models that combine the insights of various 'brands' of Post-Keynesian economics
including the following: Yale Keynesianism (James Tobin
), Cambridge-UK Keynesianism (Nicholas Kaldor
), and American Post-Keynesianism (Paul Davidson
, Hyman Minsky
).
A critique of that book was written by Basil Moore
, also a Post Keynesian economist
. Moore argues that Palley succeeds in demonstrating the coherence of Post-Keynesian macroeconomics. This is done via the concepts of effective demand, price-setting, quantity-taking fix-price supply behavior and the ineffectiveness of nominal wage and price adjustments as a means of remedying aggregate demand deficiencies. But Moore raises the criticism that by using neoclassical tools and methodology Palley has failed to take both time and uncertainty (key Post-Keynesian concerns) in a sufficiently serious fashion.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-based economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
who has served as the chief economist for the US – China Economic and Security Review Commission. He is currently Schwartz Economic Growth Fellow at the New America Foundation
New America Foundation
The New America Foundation is a non-profit public policy institute and think tank with offices in Washington, D.C. and Sacramento, CA. It was founded in 1999 by Ted Halstead, Sherle Schwenninger, Michael Lind and Walter Russell Mead....
.
Career
Palley received his Bachelor of Arts degree from Oxford University in 1976. He earned a Master's degree in international relations and a PhD in economics from Yale UniversityYale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
. Palley founded the Economics for Democratic & Open Societies project. He states its purpose to open "discussion about both the form of economic arrangements and the conditions are might best promote democracy and an open society." Palley's previous positions include director of the Open Society Institute
Open Society Institute
The Open Society Institute , renamed in 2011 to Open Society Foundations, is a private operating and grantmaking foundation started by George Soros, aimed to shape public policy to promote democratic governance, human rights, and economic, legal, and social reform...
’s Globalization Reform Project, and Assistant Director of Public Policy for the AFL-CIO
AFL-CIO
The American Federation of Labor and Congress of Industrial Organizations, commonly AFL–CIO, is a national trade union center, the largest federation of unions in the United States, made up of 56 national and international unions, together representing more than 11 million workers...
.
His work has covered macroeconomic theory and policy, international finance and trade, economic development, and labor markets where his approach is Post Keynesian
Post-Keynesian economics
Post Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, although its subsequent development was influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor and Paul Davidson...
.
Post-Keynesian work
Academically his most famous work is the book Post Keynesian Economics: Debt, Distribution, and the Macro Economy. In this book Palley tries to develop Post-Keynesian macroeconomicmodels that combine the insights of various 'brands' of Post-Keynesian economics
Post-Keynesian economics
Post Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, although its subsequent development was influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor and Paul Davidson...
including the following: Yale Keynesianism (James Tobin
James Tobin
James Tobin was an American economist who, in his lifetime, served on the Council of Economic Advisors and the Board of Governors of the Federal Reserve System, and taught at Harvard and Yale Universities. He developed the ideas of Keynesian economics, and advocated government intervention to...
), Cambridge-UK Keynesianism (Nicholas Kaldor
Nicholas Kaldor
Nicholas Kaldor, Baron Kaldor was one of the foremost Cambridge economists in the post-war period...
), and American Post-Keynesianism (Paul Davidson
Paul Davidson
Paul Davidson is an American author who is best known for his Words for My Enjoyment blog and his 2006 book The Lost Blogs....
, Hyman Minsky
Hyman Minsky
Hyman Philip Minsky was an American economist and professor of economics at Washington University in St. Louis. His research attempted to provide an understanding and explanation of the characteristics of financial crises...
).
A critique of that book was written by Basil Moore
Basil Moore (economist)
Basil Moore is a Canadian Post-Keynesian economist, most known for developing and promoting endogenous money theory, particularly the proposition that the money supply curve is horizontal, rather than upward sloping, a proposition known as horizontalism...
, also a Post Keynesian economist
Post-Keynesian economics
Post Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, although its subsequent development was influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor and Paul Davidson...
. Moore argues that Palley succeeds in demonstrating the coherence of Post-Keynesian macroeconomics. This is done via the concepts of effective demand, price-setting, quantity-taking fix-price supply behavior and the ineffectiveness of nominal wage and price adjustments as a means of remedying aggregate demand deficiencies. But Moore raises the criticism that by using neoclassical tools and methodology Palley has failed to take both time and uncertainty (key Post-Keynesian concerns) in a sufficiently serious fashion.