28-01-2020: A new-Keynesian model of the monetary policy
Author: E.A. Bakkum
Traditionally the monetary policy has been analyzed wit the AS-AD model. However, nowadays a new-Keynesian model is preferred, which is based on the Phillips curve and on the aggregated demand. The present column describes this model. Here, variants are also discussed, namely the Barro-Gordon model and a model with an infinite time horizon. The autonomy of the Central Bank is studied. It turns out that empirically the personal happiness is affected by inflation and unemployment .... Read more
14-01-2020: The mission of the trade union movement (3)
Author: E.A. Bakkum
Various columns in the Gazette have tried to describe the mission of the trade union movement. The present column studies the mission, that the Dutch trade union movement developed during the seventies of the last century. First, the then economic situation is analyzed, and the socio-cultural spirit of the time is sketched. The latter is illustrated with several characteristic biographies. Finally, the propaganda in industries and the then union actions are explained .... Read more
28-12-2019: The substitution of wage and leisure time
Author: E.A. Bakkum
The neoclassical theory assumes that the wage and the leisure time are more or less substitutes. This column explains, that according to R. Layard the substitution is not quite rational, due to human rivalry and habituation. Furthermore, a model of collective bargaining is presented, with the wage and leisure time as stakes. It reminds of the work of Sam de Wolff. Finally, it is discussed that in happiness economics, Van Praag analyzes the human preferences by means of the probit method .... Read more
18-12-2019: The mission of the trade union movement (2)
Author: E.A. Bakkum
The trade union movement is a cartel with a special character. The present column analyzes the influence, that it can exert on the wage level and on the functioning of the enterprises. The democratic structure of a trade union is described. Unfortunately the materialism of trade unions sometimes also causes penal behaviour. Next the mission of the Dutch trade union movement is studied for the postwar period, which is characterized by corporatism and by the controlled-wage policy. At the time the morals serve as a line of action. Nowadays there are theories, that can model the collective bargaining. However, they are difficult to apply to reality .... Read more
24-11-2019: Economic systems in the Third World
Author: E.A. Bakkum
Since more than a century the capitalist west tries to combat the poverty in the Third World. The present column discusses several economic theories, which make suggestions for an effective development policy. First, the dualism of J.H. Boeke is described. Next, the proposals of the planning committee of the United Nations, chaired by Jan Tinbergen, are studied. This is concluded with a retrospection in 1992, mainly by H.W. Singer. As a complement, the views of the then Novib director M. van den Berg are summarized. And an impression is given of the operational methods of private aid organizations .... Read more