Dr.DEBESH BHOWMIK

Dr.DEBESH BHOWMIK

Friday, 20 June 2014

TODAY IS THE BIRTHDAY OF ADAM FERGUSON

ADAM FERGUSON (1723-1816)









Adam Ferguson was born in Logierait, a Perthshire village on the edge of the dividing line between the English speaking Lowlands and the Gaelic speaking Highlands of Scotland. The son of a minister in the Church of Scotland, Ferguson was educated at Perth Grammar School and at the University of St Andrews, then experiencing something of a low point before undergoing major reform a few years later. Ferguson graduated in 1742 and proceeded to Edinburgh to study divinity with a view to ordination. It was there that he became acquainted with some of the leading figures of the Scottish Enlightenment, notably the ‘Moderate’ clergymen William Robertson, Alexander Carlyle and Hugh Blair. When the Jacobite rebellion of 1745 broke out, Ferguson had only completed three of the required six years of theological study, but he was granted a licence to serve as a minister so that his knowledge of Gaelic could be put to use as deputy chaplain of the Black Watch. There is some uncertainty about Ferguson’s precise role at the Battle of Fontenoy (1745), but he did sufficiently well to become principal chaplain in 1746, and remained with the regiment till 1754. Then, having failed to obtain a significant church appointment, he left the Presbyterian ministry to pursue a career as writer and scholar.

After living a short time in Leipzig, he obtained his first academic appointment in January 1757 when he succeeded David Hume as librarian to the Faculty of  Advocates in Edinburgh, though shortly after he relinquished the post to become tutor to the family of the Earl of Bute. In 1759 Ferguson finally secured a university appointment as professor of natural philosophy in the University of Edinburgh. Five years later he was able to transfer to the Chair of Pneumatics (philosophy of mind) and Moral Philosophy, for which Hume had unsuccessfully applied in 1745.

In 1767 he published his most famous and important work the Essay on the History of Civil Society. Though his friend David Hume disliked it, and had advised against publication, it was well received very widely and translated into several European languages. Two years later he published Institutes of Moral Philosophy for the Use of Students in the College of Edinburgh, thereby setting a pattern followed by many of his successors in the Edinburgh Chair who also published moral philosophy text books that were widely used. Ferguson’s ran to two editions and was translated into several other languages.

Subsequent publications included an anonymous pamphlet on the American Revolution in which he argued against Richard Price's Observations on the Nature of Civil Liberty, and a popular History of the Progress and Termination of the Roman Republic published in 1783. After his resignation of the Edinburgh Chair in 1785, he revised his lectures, and published them in 1792 under the title of Principles of Moral and Political Science. He was succeeded in the Chair by Dugald Stewart.

Adam Ferguson married in 1756 and had nine children, two of whom died in infancy. He travelled extensively in Europe and made a trip to the American colonies on government business. Late in his very long life, he returned to live in St Andrews, where he died at the age of ninety three.

Ferguson’s philosophical works exhibit some of the distinctive features of Scottish philosophy in interesting ways. For him moral philosophy has to combine
educational purpose with intellectual inquiry, and the study of human nature is the study of essentially social beings. But in addition, Ferguson’s work has an
historical dimension. The study of morality is cast within a socio-historical framework in which a process of perfection can be found at work. This contrasts with Francis Hutcheson’s account of natural sociability, which is conceived in terms of a universal natural sympathy.

It is largely on the strength of this dimension of his work that Adam Ferguson is sometimes called ‘the father of modern sociology’. It is a title that needs to be used with circumspection, however. German translations of the Essay were very influential on German social thought, and connections can be made with Hegel and Marx. But the translations were often inaccurate and gave rise to misunderstandings which make the intellectual connections with Ferguson rather more tenuous.
Main works by Adam Ferguson
- Reprinted in 1995 with a new introduction by Louis Schneider. Transaction Publishers, London, 1995.

Wednesday, 4 June 2014

TODAY IS THE BIRTHDAY OF J.M.KEYNES


TODAY IS THE BIRTHDAY OF J.M.KEYNES



John Maynard Keynes, 1st Baron Keynes,(5 June 1883 – 21 April 1946) was a British economist whose ideas have fundamentally affected the theory and practice of modern macroeconomics, and informed the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the founders of modern macroeconomics and the most influential economist of the 20th century. His ideas are the basis for the school of thought known as Keynesian economics, and its various offshoots.
In the 1930s, Keynes spearheaded a revolution in economic thinking, overturning the older ideas of neoclassical economics that held that free markets would, in the short to medium term, automatically provide full employment, as long as workers were flexible in their wage demands. Keynes instead argued that aggregate demand determined the overall level of economic activity, and that inadequate aggregate demand could lead to prolonged periods of high unemployment. According to Keynesian economics, state intervention was necessary to moderate "boom and bust" cycles of economic activity. He advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions. Following the outbreak of World War II, Keynes's ideas concerning economic policy were adopted by leading Western economies. In 1942, Keynes was awarded a hereditary peerage as Baron Keynes of Tilton in the County of Sussex. Keynes died in 1946, but during the 1950s and 1960s the success of Keynesian economics resulted in almost all capitalist governments adopting its policy recommendations.
Keynes's influence waned in the 1970s, partly as a result of problems that began to afflict the Anglo-American economies from the start of the decade, and partly because of critiques from Milton Friedman and other economists who were pessimistic about the ability of governments to regulate the business cycle with fiscal policy. However, the advent of the global financial crisis of 2007–08 caused a resurgence in Keynesian thought. Keynesian economics provided the theoretical underpinning for economic policies undertaken in response to the crisis by President George W. Bush of the United States, Prime Minister Gordon Brown of the United Kingdom, and other heads of governments.
In 1999, Time magazine included Keynes in their list of the 100 most important and influential people of the 20th century, commenting that: "His radical idea that governments should spend money they don't have may have saved capitalism." He has been described by The Economist as "Britain's most famous 20th-century economist." In addition to being an economist, Keynes was also a civil servant, a director of the Bank of England, a part of the Bloomsbury Group of intellectuals, a patron of the arts and an art collector, a director of the British Eugenics Society, an advisor to several charitable trusts, a successful private investor, a writer, a philosopher, and a farmer.
John Maynard Keynes was born in Cambridge, Cambridgeshire, England, to an upper-middle-class family. His father, John Neville Keynes, was an economist and a lecturer in moral sciences at the University of Cambridge and his mother Florence Ada Keynes a local social reformer. Keynes was the first born, and was followed by two more children – Margaret Neville Keynes in 1885 and Geoffrey Keynes in 1887. Geoffrey became a surgeon and Margaret married the Nobel Prize-winning physiologist Archibald Hill. At the age of five and a half, in January 1889, Keynes started at the Kindergarten of the Perse School for Girls for five mornings a week. He quickly showed a talent for arithmetic, but his health was poor leading to several long absences. He was tutored at home by a governess, Beatrice Mackintosh, and his mother. At eight and a half, in January 1892, he started as a day pupil at St Faith's preparatory school. By 1894 Keynes was top of his class and excelling at mathematics. In 1896 St Faith's headmaster, Ralph Goodchild, wrote that Keynes was "head and shoulders above all the other boys in the school" and was confident that Keynes could get a scholarship to Eton.
Keynes won a scholarship to Eton College in 1897, where he displayed talent in a wide range of subjects, particularly mathematics, classics and history. At Eton, Keynes experienced the first "love of his life" in Dan Macmillan, older brother of the future Prime Minister Harold Macmillan. Despite his middle-class background, Keynes mixed easily with upper-class pupils. In 1902 Keynes left Eton for King's College, Cambridge after receiving a scholarship for this also to study mathematics. Alfred Marshall begged Keynes to become an economist, although Keynes's own inclinations drew him towards philosophy – especially the ethical system of G. E. Moore. Keynes joined the Pitt Club and was an active member of the semi-secretive Cambridge Apostles society, a debating club largely reserved for the brightest students. Like many members, Keynes retained a bond to the club after graduating and continued to attend occasional meetings throughout his life. Before leaving Cambridge, Keynes became the President of the Cambridge Union Society and Cambridge University Liberal Club. In May 1904 he received a first class B.A. in mathematics. Aside from a few months spent on holidays with family and friends, Keynes continued to involve himself with the university over the next two years. He took part in debates, further studied philosophy and attended economics lectures informally as a graduate student. He also studied for his 1905 Tripos and 1906 civil service exams.
Keynes's Civil Service career began in October 1906, as a clerk in the India Office. He enjoyed his work at first, but by 1908 had become bored and resigned his position to return to Cambridge and work on probability theory, at first privately funded only by two dons at the university – his father and the economist Arthur Pigou. In 1909 Keynes published his first professional economics article in the Economics Journal, about the effect of a recent global economic downturn on India. Also in 1909, Keynes accepted a lectureship in economics funded personally by Alfred Marshall. Keynes's earnings rose further as he began to take on pupils for private tuition, and on being elected a fellow. In 1911 Keynes was made editor of The Economic Journal. By 1913 he had published his first book, Indian Currency and Finance. He was then appointed to the Royal Commission on Indian Currency and Finance – the same topic as his book – where Keynes showed considerable talent at applying economic theory to practical problems.
His written work was published under the name "J M Keynes", though to his family and friends he was known as Maynard. (His father, John Neville Keynes, was also always known by his middle name).
Publications
  • 1913 Indian Currency and Finance
  • 1914 Ludwig von Mises's Theorie des Geldes (EJ)
  • 1915 The Economics of War in Germany (EJ)
  • 1919 The Economic Consequences of the Peace
  • 1921 A Treatise on Probability
  • 1922 The Inflation of Currency as a Method of Taxation (MGCRE)
  • 1922 Revision of the Treaty
  • 1923 A Tract on Monetary Reform
  • 1925 Am I a Liberal? (N&A)
  • 1926 The End of Laissez-Faire
  • 1926 Laissez-Faire and Communism
  • 1930 A Treatise on Money
  • 1930 Economic Possibilities for our Grandchildren
  • 1931 The End of the Gold Standard (Sunday Express)
  • 1931 Essays in Persuasion
  • 1931 The Great Slump of 1930
  • 1933 The Means to Prosperity
  • 1933 An Open Letter to President Roosevelt (New York Times)
  • 1936 The General Theory of Employment, Interest and Money
  • 1940 How to Pay for the War: A radical plan for the Chancellor of the Exchequer
Throughout his life Keynes worked energetically for the benefit both of the public and his friends—even when his health was poor he laboured to sort out the finances of his old college, and at Bretton Woods, he worked to institute an international monetary system that would be beneficial for the world economy. Keynes suffered a series of heart attacks, which ultimately proved fatal, beginning during negotiations for an Anglo-American loan in Savannah, Georgia, where he was trying to secure favourable terms for the United Kingdom from the United States, a process he described as "absolute hell."A few weeks after returning from the United States, Keynes died of a heart attack at Tilton, his farmhouse home near Firle, East Sussex, England, on 21 April 1946 at the age of 62. Both of Keynes's parents outlived him: father John Neville Keynes (1852–1949) by three years, and mother Florence Ada Keynes (1861–1958) by twelve. Keynes's brother Sir Geoffrey Keynes (1887–1982) was a distinguished surgeon, scholar and bibliophile. His nephews include Richard Keynes (1919–2010) a physiologist; and Quentin Keynes (1921–2003), an adventurer and bibliophile. His widow, Lydia Lopokova, died in 1981.
The Keynesian Revolution was associated with the rise of modern liberalism in the West during the post-war period. Keynesian ideas became so popular that some scholars point to Keynes as representing the ideals of modern liberalism, as Adam Smith represented the ideals of classical liberalism. After the war Winston Churchill attempted to check the rise of Keynesian policy-making in the United Kingdom, and used rhetoric critical of the mixed economy in his 1945 election campaign. Despite his popularity as a war hero Churchill suffered a landslide defeat to Clement Attlee whose government's economic policy continued to be influenced by Keynes's ideas. By the 1950s, Keynesian policies were adopted by almost the entire developed world and similar measures for a mixed economy were used by many developing nations. By then, Keynes's views on the economy had become mainstream in the world's universities. Throughout the 1950s and 1960s, the developed and emerging free capitalist economies enjoyed exceptionally high growth and low unemployment. Professor Gordon Fletcher has written that the 1950s and 1960s, when Keynes's influence was at its peak, appear in retrospect as a Golden Age of Capitalism.[ Much of the recent discussion reflected Keynes's advocacy of international coordination of fiscal or monetary stimulus, and of international economic institutions such as the IMF and the World Bank, which many had argued should be reformed as a "new Bretton Woods" even before the crises broke out. IMF and United Nations economists advocated a coordinated international approach to fiscal stimulus. Donald Markwel argued that in the absence of such an international approach, there would be a risk of worsening international relations and possibly even world war arising from similar economic factors to those present during the depression of the 1930s. Among professional economists the revival of Keynesian economics has been even more divisive. Although many economists, such as George Akerlof, Paul Krugman, Robert Shiller, and Joseph Stiglitz, support Keynesian stimulus, others do not believe higher government spending will help the United States economy recover from the Great Recession. Some economists, such as Robert Lucas, questioned the theoretical basis for stimulus packages. Others, like Robert Barro and Gary Becker, say that the empirical evidence for beneficial effects from Keynesian stimulus does not exist. However, there is a growing academic literature that shows that fiscal expansion helps an economy grow in the near term, and that certain types of fiscal stimulus are particularly effective.

Wednesday, 21 May 2014

EURO CRISIS




THE EURO CRISIS AND INTERNATIONAL LIQUIDITY PROBLEMS
Author--Debesh Bhowmik
Publisher--Synergy Books India
(www.synergybooksindia.com
24/4800,Ansari Road ,Darya Ganj,NewDelhi-110002
HB,Page-xxiv+305,Price-Rupees 995/-

The book is the post- doctoral work of the author and Clem Tisdell, The Emeritus Professor of Economics of The University of Queensland ,Australia has written the foreword.
Euro crisis is the hottest topic in the world economic affairs or rather in international liquidity problem because debt crisis of Euro Area particularly in some countries created the financial crisis in EU from which the existence of Euro becomes questionable, although it was originated from US financial crisis during 2008.Existence of currency area and single currency depend on the suitable and realistic policies to revive Euro to its original path of progress towards monetary and economic integration. Even, the Euro has been playing a great role in maintaining the stability of international monetary system.
In this context, the book “ The Euro Crisis and International Liquidity Problems ”is very relevant in the area of international monetary issues that govern the international money. The problem of Euro crisis is not an independent issue rather it is deeply correlated with the currency hegemony in the world payment mechanism. Therefore, the book studied the historical perspective of EU and the convergence criteria, causes of Euro crisis-its various impacts, including developing countries and the implications of Euro crisis on the international monetary system , political economy concept of the crisis  are of special importance. The impact on Indian Economy is added for an extra study area . The macro fundamentals and issues in money market of Euro crisis could not be avoided with sound reasons of the genesis of the problem. The international role of Euro may throw light on the genesis of international liquidity problems as well as the euro as international money will justify the issue of international money game. The diagnostic test of the econometric analysis of the Euro crisis could not be considered as an insignificant part of the book.The problems and Prospects of the recovery of the crisis is also an important discussion of the book.
Lastly, the Euro crisis has been discussed from every corner of the economic aspect of the problem relating to international liquidity issues and its root causes. This book, The Euro Crisis and International Liquidity Problems, is a timely publication given the serious international financial and economic repercussions of the Euro Crisis and the economic suffering which it is causing within the EU itself. Furthermore, it is a crisis that has not yet been solved and consequently, its impacts and likely to be felt for several years to come.
This book containing 14 chapters tried to search the inherent causes and evolving roots of the Euro Area debt crisis which finally turned into financial crisis, as well as it showed some policy issues to revive the Stability of Euro, to increase the international liquidity for Euro, and to find out the policies to solve the debt crisis of the debt ridden countries. The Euro crisis had been related with the international monetary system and political economy concept of Euro zone which ultimately would able to clarify the genuine solution and revival process of the Euro crisis. we cannot infer immediately that capitalist integration fails or the process of capitalist integration has been confronting with severe capitalist crisis rather the co-operation of G8, IMF and ECB seem to be apparently favourable for survival of regional blocs in multilateral trade and world financial integration where key currency domination principle became less prior in curing euro crisis.  
The book would be able to attract researchers, professionals and policy makers as well as general readers.
The following chapters are included in this book:
[1] Euro Crisis : An introduction
[2] History of E.E.C.
[3] The Maastricht Treaty
[4] Euro Crisis : Macro fundamentals of Euro Area
[5] Euro Crisis : Impact on the developing countries
[6] Euro Crisis: impact on money market
[7] Euro Crisis : The diagnostic tests
[A] A short note on the behavior of US$/Euro exchange rate during 1999-2012
[B] Euro crisis : Co-integration of fiscal deficit of euro area
[C] Euro Crisis : The Nexus between growth and employment in EU
[8] Policies relating to Euro crisis
[9] Euro Crisis : Implications on International Monetary System
[10] Euro crisis: The concept of political economy
[11] Impact of Euro Crisis on Indian Economy
[12] International role of Euro
[13] The Euro as international money
[14] Conclusion