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• We use for the first time the second generation of panel cointegration techniques to test the absolute cost advantage theory put forth by Shaikh. • The statistical evidence suggests that the real effective exchange rates were governed by relative vertically integrated unit labour costs over the 2000-2014 period. • The results are consistent with other studies that have econometrically tested the hypothesis of absolute cost advantage. Following the theory of absolute cost advantage, the present study aims to verify the hypothesis that, during 2000-2014, the real effective exchange rates of the United States and German manufacturing sectors vis-à-vis their North American and European partners, respectively, have been governed by the relative vertically integrated unit labour costs. To this purpose, the second generation of panel cointegration techniques to control for both cross-sectional dependence and slope heterogeneity is applied in our empirical analysis. The long-run equations are estimated by the mean group, the common correlated effects mean group, and the augmented mean group. The findings suggest that the cost-competitiveness of both US and German manufacturing sectors is positively associated with the decrease in the relative vertically integrated unit labour costs over the 2000-2014 period. [ABSTRACT FROM AUTHOR]

As the heir of political philosophy, the English post-commercialist economy and the French physiocracy, since its origin, political economy has integrated production, circulation and the theory of value into the theories of the modern state and capitalist society. In this paper it is argued that, in political economy, the conceptions of the State and of society are related to the theory of surplus. It criticizes the marginilist notion of society, emphasizes the centrality of the theory of surplus, explained in the conflict between State and society, and identifies the limits of the principle of effective demand of Keynes and Kalecki. The main conclusion is that economic policy recommendations based on inflation, wage deflation and containment of public spending goals seek to increase the surplus in the crisis and recession phases of the economic cycle. [ABSTRACT FROM AUTHOR]

The aim of this paper is to examine the link between Marx's monetary theory and its explanation of value, production and circulation. For this, it presents the basic theoretical elements that allow a critique of the quantitative theory, the Chartalist conception of the genesis of money and the post-Keynesian theory of endogenous money. Then, from a Marxist perspective, it analyzes the controversial relationship between the monetization of public debt and the increase in the general level of prices. [ABSTRACT FROM AUTHOR]