Jahangi , Junaid B.
Book Re iew
Book e iew o Je e son, The ese and King, John E.: Pos
Keynesian Economics: Key Deba es and Con ending
Pe spec i es
Eu opean Jou nal o Economics and Economic Policies: In e en ion (EJEEP)
P o ided in Coope a ion wi h:
Edwa d Elga Publishing
Sugges ed Ci a ion: Jahangi , Junaid B. (2025) : Book e iew o Je e son, The ese and King, John
E.: Pos Keynesian Economics: Key Deba es and Con ending Pe spec i es, Eu opean Jou nal o
Economics and Economic Policies: In e en ion (EJEEP), ISSN 2052-7772, Edwa d Elga Publishing,
Chel enham, Vol. 22, Iss. 3, pp. 484-487,
h ps://doi.o g/10.4337/ejeep.2025.0154
This Ve sion is a ailable a :
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Eu opean Jou nal o Economics and Economic Policies: In e en ion, Vol. 22 No. 3, 2025, pp. 484–487
Fi s published online: Ap il 2025; doi: 10.4337/ejeep.2025.0154
Jou nal compila ion © 2025 Edwa d Elga Publishing L d
© 2025 The Au ho
Book Re iew
This is an open access wo k
G ow h models, g ow h s a egies, and powe
blocs in Tu key and Egyp in he wen y- i s
cen u y
Ali Rıza Güngen
Social Sciences, Columbia College, Canada
Ümi Akçay
Ins i u e o In e na ional Poli ical Economy, Be lin School o Economics and Law, Be lin, Ge many
Uemi .Akcay@hw -be lin.de
Analysis o he g ow h pa e ns in he Global Sou h in he wen y- i s cen u y sugges s he e is oom
o au ho i a ian s a es o sea ch o new g ow h models. Au ho i a ian s a es, such as Tu key and
Egyp , bene i ed om global inancial ci cums ances in he ea ly 2000s and expe ienced shi s in
g ow h s a egies in he 2010s, supp essing poli ical space u he . Ou main esea ch ques ion,
hus, is ocusing on wha he main domes ic poli ical economy causes o hese g ow h s a egy and
model changes a e. To explain he changes in g ow h s a egies and models amid he s eng h o ein-
o ced au ho i a ian egimes in hese wo coun ies, we employ a hyb id esea ch s a egy, ying
g ow h model changes o con lic s wi hin he powe bloc. We a gue ha in he mid- o-la e
2010s, pe iphe al goods p oduce s gained he uppe hand in Tu key, while a mili a y akeo e in
Egyp was ollowed by he p omo ion o expo s and new in es men s. We also con end ha powe
bloc econ igu a ions in he las decade and he ise o new g ow h s a egies bo h in Tu key and in
Egyp aimed o change p e ious domes ic demand-led demand and g ow h models.
Keywo ds: compa a i e poli ical economy, g ow h models, g ow h s a egies, Tu key, Egyp
JEL codes: B52, E65, E66, F43, O43, P52
1 INTRODUCTION
Au ho i a ian s a es in Tu key and Egyp eju ena ed hemsel es in he 2010s. This was a
de elopmen con a y o he widesp ead expec a ion ha when aced wi h deep economic
c ises and b ewing social discon en , au ho i a ian egimes a e less likely o main ain hei
powe . This s udy elabo a es on he g ow h models o Tu key and Egyp in he wen y-
i s cen u y. Despi e signi ican di e ences ega ding expo capaci y and mac oeconomic
indica o s, poli ical economic de elopmen s con e ge in a ious aspec s in hese wo coun-
ies. Mo eo e , he au ho i a ian egimes in bo h Tu key and Egyp main ained hei
powe while inc easingly supp essing he poli ical space in he 2010s (Tuğal 2016). We
desc ibe au ho i a ianism as a se o p ac ices ha isola es key policy-making p ocesses
om democ a ic o e sigh and excludes la ge g oups such as wo king classes, e hnic mino-
i ies o subal e n g oups om ins i u ional poli ics (Salgado 2022). F om a c i ical poli-
ical economy pe spec i e, au ho i a ian p ac ices canno be concei ed as clea ly cu om
Resea ch A icle
This isan open access wo k
Recei ed 8 Decembe 2022, accep ed 7 No embe 2023
Eu opean Jou nal o Economics and Economic Policies: In e en ion, Vol. 21 No. 1, 2024, pp. 151–171
Fi s published online: Ap il 2024; doi: 10.4337/ejeep.2024.01.09
Jou nal compila ion © 2024 Edwa d Elga Publishing L d
© 2024 The Au ho
Book e iew o Je e son, The ese and King,
John E.: Pos Keynesian Economics: Key Deba es
and Con ending Pe spec i es
Chel enham, UK and No hamp on, MA, USA, 2024 (246 pages,
Edwa d Elga Publishing, ha dco e , ISBN: 978-1-80392-222-5)
Junaid B. Jahangi *
MacEwan Uni e si y, Canada
De Muijnck and Tieleman (2021) a gue ha mains eam economics educa ion does no
help ackle challenges like clima e change and inequali y. The e o e, hey sugges shi -
ing he emphasis om ma hema ical echnicali ies o eaching based on eal-wo ld issues
and plu alism. They s a e ha plu alism is based on con as ing di e ing pe spec i es, a
poin made ea lie by Mea man (2017) h ough con ending pe spec i es. Simila ly, in
his mani es o on a new economics, Keen (2022, p. 151) a gues ha he mos impo an
al e na i es o mains eam economics educa ion include Pos Keynesian economics and
Mode n Mone a y Theo y (MMT). Thus, opics o ecology and inequali y, con ending
pe spec i es, and MMT and Pos Keynesian economics, all d ew me o he olume edi ed
by Je e son and King.
As an educa o , I ecognize ha many he e odox economis s ha e adop ed popula
books in hei eaching (de Muijnck e al. 2023). I oo ha e inco po a ed popula books
like Kel on (2021) on MMT, Hickel (2021) on deg ow h and Pike y (2021) on inequal-
i y. Howe e , he chap e s in Je e son and King by dis inguished expe s p o ide con as -
ing pe spec i es ha en ich he class oom beyond he na a i e o popula books. While
he edi ed collec ion highligh s se e al opics, my e iew ocuses on chap e s ha , espec-
i ely, highligh he opical issues o MMT, he G een New Deal (GND) and inequali y.
Acco ding o he chap e by A ms ong, MMT ejec s he mains eam iew ha money
a ose o add ess ine iciency in he ba e sys em. Ins ead, he go e nmen spends money
o ob ain goods and se ices om he p i a e sec o and c ea es a ax liabili y o c ea e
demand o ha money. Acco ding o MMT, budge de ici s p o ide he money o p i-
a e sec o sa ing. This is e lec i e o Godley’s sec o al balance iden i y. Mo eo e , MMT
ejec s sel -imposed ules like deb ceilings and he p ohibi ion o selling public sec o deb
di ec ly o he cen al bank. The la e a i ms he MMT iew o a consolida ed go e n-
men and cen al bank.
MMT ejec s he mains eam iew ha banks unnel deposi s o loans and ins ead
sugges s ha loans c ea e deposi s. Simila ly, MMT ejec s he quan i y heo y o money
ha in la ion is he esul o p in ing oo much money. Ins ead, he p ice le el is de e -
mined by he p ices paid by he go e nmen . Addi ionally, MMT emphasizes he ole o
* Email: [email p o ec ed].
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Jou nal compila ion © 2025 Edwa d Elga Publishing L d© 2025 The Au ho
oligopoly ma ke powe , asse p ices and supply chain bo lenecks o explain in la ion.
On comba ing in la ion, MMT ejec s mone a y policy and sugges s ha con ac iona y
mone a y policy is in ac expansiona y, as highe in e es a es add in e es income o
he economy gi en ha go e nmen deb is p i a e sec o sa ing. Ins ead, MMT sup-
po s ackling oligopoly powe by p ice con ols and imp o ing supply chain lexibili y.
Mo eo e , i suppo s a job gua an ee (JG), which achie es bo h p ice s abili y and ull
employmen .
On ade, MMT ecognizes expo s as he cos o acqui ing impo s and ha cu en
accoun de ici allows o eigne s o in es in inancial asse s. Howe e , i also ecognizes
ha de eloping coun ies may be unable o expo su icien ly o impo ood and ene gy
and, he e o e, may incu o eign cu ency deb . Thus, MMT ad oca es he ans e o
esou ces om he Global No h o he Global Sou h. While he MMT iew on ade is
like ha o F iedman ha expo s a e he cos s o ade, i emains he e odox on he ans-
e o esou ces o de eloping coun ies ha a e mi ed in o eign cu ency deb . O e all,
he chap e by A ms ong p o ides a concise MMT p ime on how i con as s wi h main-
s eam economics on he o igin o money, budge de ici s, in la ion and ee ade.
Acco ding o he chap e by La oie, MMT ejec s he household analogy o sugges ha
a so e eign cu ency issuing go e nmen wi h a lexible exchange a e and wi hou o eign
cu ency deb is no inancially cons ained. I ejec s he c owding ou e ec , as in e es
a es ha e been kep close o ze o despi e huge budge de ici s h ough he 2008 inancial
c isis and he COVID pandemic. Mo eo e , con a y o he loanable unds ma ke model,
MMT shows ha budge de ici s lowe he in e es a e. Th ough a JG, MMT suppo s a
spa ial coun e cyclical policy, as i ocuses on job c ea ion whe e i is needed. Addi ionally,
MMT ejec s he mains eam emphasis on sound inance and ins ead suppo s he unc-
ional inance app oach wi h emphasis on p ice s abili y and ull employmen .
Howe e , he chap e also akes a c i ical app oach o MMT. The issue is ha se e al
pos -Keynesians ejec he consolida ion o he go e nmen and he cen al bank, as p o-
jec ed in Kel on (2021). Based on La oie, he STAB (spending be o e axes and bo ow-
ing) model is akin o he Keynesian iew ha in es men p ecedes sa ing. Howe e , he
a gues ha i is misleading o a gue ha he go e nmen does no need axes o bo owing
o spend, as i needs o access unds om inancial ins i u ions. Addi ionally, go e nmen s
can de aul i inancial ins i u ions ejec go e nmen bonds. Simila ly, loa ing exchange
a es do no help when budge de ici s cause ade de ici s and consequen ly dep ecia ion,
in la ion, low eal wages and ecession.
La oie c i iques ha he MMT iew ha cu ency only has alue because i is used
o pay axes igno es he issue o con idence in cu ency, he MMT p esc ip ion o se he
o e nigh in e es a e a ze o igno es he issues o inancial ins abili y and asse in la-
ion, he MMT solu ion o JG igno es he issue ha i would elimina e well-paid union-
ized jobs, and he MMT idea ha JG would achie e p ice s abili y and ull employmen
igno es he issue when in la ion is caused by dep ecia ion and impo cos s. O e all, he
chap e acknowledges he me i o MMT in challenging mains eam iews on he house-
hold analogy, c owding ou e ec and sound inance. Howe e , i c i iques MMT on he
STAB model, go e nmen de aul despi e so e eign cu ency, and he issues wi h loa ing
exchange a es, ze o o e nigh in e es a e and JG. In doing so, i helps acili a e he con-
ending pe spec i es app oach in he class oom.
Acco ding o he chap e by Pe y, he GND may inc ease o dec ease ca bon emis-
sions. This is based on whe he absolu e decoupling o he economy om ma e ial and
ene gy h oughpu can be achie ed, o only ela i e decoupling is achie ed whe e eco-
nomic g ow h ou s ips en i onmen al e iciency. The e o e, ecological economics c i-
iques he mains eam app oach o ca bon p icing, as i only yields ela i e decoupling.
486
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© 2025 The Au ho
Eu opean Jou nal o Economics and Economic Policies: In e en ion, Vol. 22 No. 3
Ins ead, i p omo es a deg ow h o pos -g ow h economy o achie e absolu e decoupling
by educing consump ion pe pe son, inequali y and popula ion g ow h.
GND p oponen s a gue o inancing he GND h ough axes on pollu e s, educed
subsidies o pollu e s and shi ing spending om de ence. The la e is based on he a gu-
men ha spending on a es ing clima e change is a p e-emp i e de ence spending agains
wa s and mass mig a ion ins iga ed by clima e change. To his se o policies, I would add
highe axes on he uppe income classes, co po a e axes and inancial ansac ion ax,
based on he chap e by Ha is. Howe e , despi e such ini ia i es, GND can be cons ued
as a o m o ‘g eenwashing’, i.e., okenis ic en i onmen al ac ions, i ca bon emissions
inc ease despi e he GND. O e all, while he chap e is qui e echnical, i helps shi he
emphasis om he GND o deg ow h.
Acco ding o he chap e by P essman, while Pike y emphasizes a weal h ax o educe
inequali y, pos -Keynesianism ocuses on s abilizing business cycles. I highligh s ha
Pike y has shi ed om > g o ideology o explain inequali y. His ea lie heo y was
c i iqued based on he idea ha weal h inequali y is no necessa ily due o > g, as people
can ge unlucky and lose weal h, consume hei weal h, o di ide i amongs hei chil-
d en. Mo eo e , > g hi s a snag, as based on mains eam economic heo y, he e u n o
weal h should decline as i g ows. Howe e , pos -Keynesianism explains why > g based
on he idea ha inancial inno a ion and indi iduals modi ying hei asse po olio, bo h
inc ease he a e o e u n ( ).
Pos -Keynesianism explains ha inequali y educes e ec i e demand, as he ich ha e
a lowe p opensi y o consume. Mo eo e , inequali y educes p oduc i i y g ow h. This is
because p oduc i i y is based on e ec i e demand, as in he case o se ices like o ches a
whe e p oduc i i y is no based on he speed o musicians bu on money based on icke
sales. Howe e , I do no necessa ily ag ee wi h P essman’s o he example whe e eache
p oduc i i y is based on ha ing mo e s uden s in he class oom. I would a gue ha he
con e se holds ue whe e s uden s ail o ecei e indi idual a en ion and become me e
numbe s in la ge class ooms.
P essman s a es ha while Keynesianism calls o cyclically balanced go e nmen
budge s, Pike y had ad oca ed a balanced budge o comba inequali y by axing he
ich ins ead o bo owing. Taxing he ich and edis ibu ing o he poo would p omo e
consume spending and economic g ow h wi hou inc easing budge de ici and deb .
Howe e , Pike y has shi ed owa ds a mo e Keynesian iew and pe haps e en MMT,
which is no conce ned wi h deb . Al hough, based on he chap e by King, Pike y e ains
he solu ion o p og essi e annual ax on weal h o p o ide a uni e sal capi al endowmen .
O e all, he chap e shows ha pos -Keynesianism helps explain > g, ha inequali y low-
e s e ec i e demand and p oduc i i y g ow h, and he e olu ion o Pike y’s ideas, which
is no e iden om eading Pike y (2021) alone.
Whils my ocus is on MMT, deg ow h and inequali y, he book also showcases o he
ea u es in pos -Keynesian economics. Fo ins ance, he in oduc o y chap e highligh s
he impo ance o e ec i e demand and money in de e mining employmen and ou pu ,
he powe o oligopolis ic indus ies o in luence go e nmen s and ins i u ions, and he
ole o class con lic in de e mining bo h income dis ibu ion and in la ion. Addi ionally,
i highligh s he capi alis logic ha p io i izes he p i a e sec o bu main ains aus e i y
o he people. In popula ja gon, his logic is no ed as capi alism o he poo and social-
ism o he ich.
Likewise, he chap e by Rochon highligh s he e e se causali y om in es men
o sa ing and ha in la ion is based on he con lic be ween wo ke s and capi alis s.
Finally, he chap e by Long pushes pos -Keynesianism o ecognize he acial and gende
biases in iscal and mone a y policies by acknowledging inequi able access o inancial
Book e iew 487
Jou nal compila ion © 2025 Edwa d Elga Publishing L d© 2025 The Au ho
and labou ma ke s. Howe e , he book igno es issues o plu alism in economic heo y,
pos -Keynesian mic oeconomics and he ole o ma hema ical and econome ic modelling
in pos -Keynesian economics. As an educa o , I look o wa d o such opics in u u e
edi ed olumes.
To ecapi ula e, he edi ed olume o chap e s p o ides eade s wi h con ending pe -
spec i es on MMT s pos -Keynesianism, GND s deg ow h and he nexus be ween
Pike y and pos -Keynesian economics. In so doing, he book adds o he pe spec i es
o e ed by popula books like hose by Kel on (2021), Hickel (2021) and Pike y (2021).
REFERENCES
De Muijnck, S., Tieleman, J. (2021): Economy S udies, Ams e dam: Ams e dam Uni e si y P ess.
h ps://www.economys udies.com/es- o -mac o/ (accessed 23 Feb ua y 2025).
De Muijnck, S., Tieleman, J., Rea don, J. (2023): Fo ewo d, In e na ional Jou nal o Plu alism and
Economics Educa ion, 14(2), 83–93.
Hickel, J. (2021): Less Is Mo e: How Deg ow h Will Sa e he Wo ld, London: Penguin.
Keen, S. (2022): The New Economics: A Mani es o, Camb idge: Poli y P ess.
Kel on, S. (2021): The De ici My h, New Yo k: Public A ai s.
Mea man, A. (2017): Teaching he e odox economics concep s, in: The Handbook o Economics
Lec u e s, The Economics Ne wo k. h ps://www.economicsne wo k.ac.uk/handbook/plu alism
(accessed 23 Feb ua y 2025).
Pike y, T. (2021): Time o Socialism, New Ha en: Yale Uni e si y P ess.
