{"id":24837,"date":"2015-02-24T04:51:07","date_gmt":"2015-02-24T03:51:07","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=24837"},"modified":"2015-02-24T04:51:07","modified_gmt":"2015-02-24T03:51:07","slug":"women-focus-on-growth-and-its-meaning","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/women-focus-on-growth-and-its-meaning\/","title":{"rendered":"Women Focus on Growth and Its Meaning?"},"content":{"rendered":"<p>Philip Pilkigton throws out some new ideas: The basic idea runs as such: firms want to expand. In order to expand, they must invest. But in order to invest they must accumulate profits. Now, you will probably think <em>\u201cthey can borrow money to invest to <a id=\"KonaLink0\" class=\"kLink\" href=\"http:\/\/econintersect.com\/a\/blogs\/skins\/frugal\/#\"><\/a>too\u201d<\/em>. This is true. But in the Post-Keynesian theory it is sometimes assumed that the leverage ratio of firms remains somewhat constant. We will come back to this in a moment. Let us now lay out the most basic form of the Post-Keynesian growth equation for the firm. It runs as such:<\/p>\n<p><a href=\"https:\/\/fixingtheeconomists.files.wordpress.com\/2014\/09\/leverage-equation.jpg\" rel=\"nofollow\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-3799 size-full\" src=\"https:\/\/fixingtheeconomists.files.wordpress.com\/2014\/09\/leverage-equation.jpg?w=640\" alt=\"leverage equation\" width=\"598\" height=\"168\" \/><\/a><\/p>\n<p>How should we read this intuitively? The most interesting component from our perspective is the convention that allows the firm to borrow, <strong><em>p<\/em><\/strong>. As we can see, when this term increases in numerical value this leads to a higher denominator. This means that a higher rate of growth, <strong><em>g<\/em><\/strong>, will be able to take place for a lower rate of profit, <strong><em>r<\/em><\/strong>.<\/p>\n<p>The growth equation as laid out above remains a handy tool provided we recognise it for what it is.\u00a0 I remain highly skeptical of long-run modelling and of the usefulness of some of the comparative statics approaches that are deployed.<\/p>\n<p>Should we redefine growth and its centrality in our economic thoughts?<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.w-t-w.org\/en\/women-focus-on-growth-and-its-meaning\/growth-4\/\" target=\"_blank\" rel=\"attachment wp-att-24838\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-24838\" src=\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/02\/Growth1.jpg\" alt=\"Growth?\" width=\"665\" height=\"497\" srcset=\"https:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/02\/Growth1.jpg 665w, https:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/02\/Growth1-300x224.jpg 300w, https:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/02\/Growth1-401x300.jpg 401w\" sizes=\"auto, (max-width: 665px) 100vw, 665px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Philip Pilkigton throws out some new ideas: The basic idea runs as such: firms want to expand. In order to expand, they must invest. But in order to invest they must accumulate profits. Now, you will probably think \u201cthey can &hellip; <a href=\"https:\/\/www.w-t-w.org\/en\/women-focus-on-growth-and-its-meaning\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[23,13,21],"tags":[],"class_list":["post-24837","post","type-post","status-publish","format-standard","hentry","category-entrepreneurs","category-finance","category-financial-literacy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts\/24837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/comments?post=24837"}],"version-history":[{"count":2,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts\/24837\/revisions"}],"predecessor-version":[{"id":24840,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/posts\/24837\/revisions\/24840"}],"wp:attachment":[{"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/media?parent=24837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/categories?post=24837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.w-t-w.org\/en\/wp-json\/wp\/v2\/tags?post=24837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}