Jamee K. Moudud
Published: 2010-01-01
Total Pages: 183
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Economists from all heterodox traditions of political economy will benefit from reading this book both for its confirmation of many of the basic precepts of classical, Marxian and Harrodian economics and the challenges it poses for its trenchant Post-Keynesian/Kaleckian critics, for whom short-period analytics of effective demand can and should be extended to long-period analysis. While his critique of the principle of effective demand for the long run would leave many Post-Keynesians uncompromising, the strong Keynesian view held by the author on the necessity for public-sector capital budgeting, and a developmental state upon which ought to be grafted a long-term growth policy based on public investment would certainly find strong resonance in the context of the global economic crisis. Mario Seccareccia, University of Ottawa, Canada and Editor of the International Journal of Political Economy Jamee K. Moudud s book is in the best tradition of dynamic economics stemming from the work of Harrod and Kalecki. Moudud demonstrates a solid command of the intellectual history of his subject. His insightful critical survey of the growth literature focuses on an often neglected dimension of the topic, i.e. the question of how real-world firms make decisions about capacity utilization and capacity creation. This discussion grounds Moudud s subsequent theoretical analysis of the disequilibrium dynamics of cyclical growth. The book is that rarest of things both a useful teaching tool and an original contribution in its own right. Graduate students will find it a superb introduction to the analytical issues that are at the center of economists debates about growth, economic development and the business cycle. Growth theorists will find in it much to stimulate and challenge their thinking. Gary Mongiovi, St John s University, US and Co-Editor, Review of Political Economy The pillar upon which this magnificent must-read volume was erected is strategic competition, a theory that cogently authenticates the concentration and centralization of capital. This stands in stark contrast against the fanciful neoclassical perfect completion and its methodological double, imperfect competition. In Strategic Competition, Dynamics, and the Role of the State, Jamee Moudud has taken a novel approach to the study of macrodynamics. Here turbulence and crisis are deemed inseparable from the dynamics of capitalist economies and the last three decades of neoliberal policies are eloquently called into question. Moudud also provides a timely and effective critique of both new Keynesian and post-Keynesian approaches to macroeconomic theory and policy. Cyrus Bina, University of Minnesota (Morris Campus), US and an Editor of the Journal of Critical Studies on Business and Society The current economic crisis has thrown into disrepute the representative agent models at the forefront of the microfoundations agenda. Jamee Moudud takes a different approach, going back to first principles to re-establish the theory of the firm and the nature of market competition. The result is an important addition to two ongoing quests in macroeconomics: integrating the principle of effective demand into long run macrodynamics; and relating aggregate outcomes to firm behaviour and the functioning of markets. Mark Setterfield, Trinity College, US This is a very timely, refreshing and challenging book, an excellent contribution in the areas of competition and growth. It blends beautifully the microeconomic analysis of the Oxford Research Group, at the center of which is the idea of strategic competition; and an extension of Harrod s work on growth. The discussions of uncertainly and excess capacity, and the interpretation of Harrod s work are outstanding. This combination leads one to think about policy issues such as taxation or public investment in a novel way, as the implications differ not only from those that derive from neoclassical models, but also from Post-Keynesi