modern money theory and the facts of experience this paper discusses modern money theory mmt with a particular focus on the role of the state in its monetary system and the nature of money it addresses the main differences between the orthodox heterodox and mmt approaches to monetary theory while reconciling endogenous money theory with the state money approach by emphasising the symmetry between how banks create money as they finance private spending and how the government creates money when it finances its own spending we clarify some of the misconceptions surrounding mmt while showing that it is more consistent with the facts of experience furthermore we argue that mmt s insistence that government spending or lending must precede bond sales is consistent with the keynesian emphasis on effective demand as the driving force behind income and saving we delve into mmt s implications for monetary and fiscal policy with a particular focus on the eurozone we conclude our paper by discussing two proposals of monetary cranks narrow banking and government issue of debt free money this allows us to re emphasise mmt s views on the nature of money

competitor see competitor do incumbent entry in new market niches the ability to keep up with changing technology is critical for a company s long term survival however companies have to balance the risk of rushing into new areas and potentially cannibalizing their existing business against the risk of missing the emerging market this paper investigates when incumbents enter into new market niches created by technological innovation we argue that market conditions and company specific characteristics do not suffice to explain incumbents entry timing but that entry is a contagious process our results demonstrate that incumbents are more likely to respond to innovations in their industry when their counterparts do so in particular we show that incumbents are affected by the entry of firms that are similar in size and resources when a highly similar company enters the new market it raises the probability that the company enters itself beyond levels based solely on the attractiveness of the market

supply chain integration and national collectivism abstract integration at an intra organizational and supply chain sc level has been well studied to determine its benefits and drawbacks the foundation of these studies is their assumption that managers choose integration based on economic considerations following the behavioral theory of the firm btf strategic decisions are not always based on economics but are subject to the usual phenomena associated with aspirational levels in this respect the potential influence and consequences of national culture building aspiration levels on the integration choice of decisionmakers remain unrecognized this study researches the relationship between national collectivism values and the observed internal and external sc integration sci of companies we postulate that national collectivism values generate an aspirational need that moves integration as a potential choice to satisfy this need more into decisionmakers focus we explore the influence of two dimensions of a national culture of collectivism values in group and institutional on decisionmakers choice of higher or lower degrees of plant level integration in addition we explore the operational performance efficacy of firms integration practices we combine data from two multi country datasets using mixed effect models to analyze data from seven countries the results indicate national collectivism values are positively related with plant level use of internal but not of external sci furthermore sci is positively related to operational performance the study supports and extends btf it supports the assumption of behavioral forces in modern firms decision making and adds national culture as an external force to the theory

young and no money never mind the material impact of social resources on new venture growth although growth is a desirable outcome for new ventures due to the many advantages of large size most new firms fail to grow largely because of their limited resources and adaptability this paper addresses the question of how new ventures grow despite their limited financial resources i explore the effect of two specific nonfinancial social resources legitimacy and status on new venture growth i propose that new firms can acquire legitimacy by mimicking the structures and ceremonial activities of established firms in their industry and can acquire status by affiliating with high status entities using a unique panel data set on a cohort of advertising agencies founded in new york and chicago between 1977 and 1985 i show that legitimacy and status have favorable impacts on new firms growth in revenues and number of employees the paper makes important contributions to social embeddedness and institutional research by examining the strategic implications of firm level social resources and to the literature on entrepreneurship in general and new venture growth in particular

divestment response to host country terrorist attacks inter firm influence and the role of temporal consistency abstract host country terrorism poses extreme uncertainty to mnes foreign operations however little is known about how mnes respond to host country terrorist attacks and how they make the related decisions drawing on the research on mnes responses to exogenous shocks and the inter firm imitation literature we argue that mnes obtain relevant information from peers actions under terrorist attacks to inform their own responses thus mnes are more likely to divest under host country terrorist attacks when peers also divest furthermore the impact of peers divestments on focal mnes divestments is magnified by the temporal consistency in peers behavioral pattern under terrorist attacks as temporal consistency reduces inferential difficulties empirical evidence based on 93 fortune us companies and their 8698 foreign subsidiaries over 2005 2015 support our hypotheses our study extends the literature on mnes responses to host country exogenous shocks and on inter firm imitation by demonstrating the social amplification of terrorism threat and the role of temporal consistency in inter firm imitation under extreme uncertainty practically we stress that mne executives should always consider their firms idiosyncratic situations when modeling peer mnes actions and be mindful that they are especially likely to imitate peers temporally consistent behaviors under extreme uncertainty

effects of local legitimacy on certification decisions to global and national csr standards by multinational subsidiaries and domestic firms we explore the impact of local legitimacy on the imitation of certification by subsidiaries of foreign multinational enterprises and domestic firms we propose that mne multinational enterprise subsidiaries and domestic firms differ in their propensity to imitate geographically proximate firms when deciding whether to adopt national vs global csr corporate social responsibility certifications for two reasons first there are differences in the legitimacy they can expect to gain in different communities from adopting these certifications second there are differences in their knowledge about the local legitimacy of these certifications we test our hypotheses by studying the decisions of automotive suppliers in mexico to certify either to iso 14001 a global certification or to clean industry a national certification we find that geography matters mne subsidiaries imitate national certifications by geographically proximate firms to overcome a liability of foreignness while domestic firms imitate global certifications by proximate firms to overcome the disadvantages of localness we explore the implications of our findings for institutional theory and future research

full reserve banking more cranks than brave heretics this paper analyses the main features and policy implications of full reserve banking frb proposals it argues that whilst frb advocates recognize the essential endogeneity of the money creation process they have failed to understand the post keynesian and monetary circuitist analyses of endogenous money which leads them to analytical errors including lending activity creates seigniorage privilege for commercial banks inflation is always and everywhere a monetary phenomenon the inability of distinguishing the actual from the planned supply of bank loans and money to be spent from money hoarded and the debt free money proposition the paper also argues that an frb system is likely to exacerbate financial instability for several reasons including the obsessive focus on commercial banks while ignoring non bank financial intermediaries and shadow banking a blind fascination for the safety and security of the payment system with little consideration for the financing needs of capitalist economies and an inherent deflationary bias furthermore frb arrangements would soon be undermined by the development of alternative near moneys finally frb will nullify the automatic stabilisers of fiscal policy and lead to a de facto dominance of monetary policy and unelected central bankers over fiscal policy and democratic decision making

the continuing muddles of monetary theory a steadfast refusal to face facts lionel robbins was concerned about the methodology of economic science when he discussed the relationship between theory and reality two of the examples of inappropriate relationships were taken from monetary economics such shortcomings continue among the worst are 1 is lm whereby the monetary authorities set the monetary base and the interest rate is market determined 2 the monetary base multiplier of bank deposits and the role of reserve ratios 3 the current three equation neoclassical consensus assuming perfect creditworthiness and hence no need for banks 4 the analysis of the evolution of money

managerial cognition and the mimetic adoption of market positions what you see is what you do managers planning to abandon a market position need to find a promising alternative and face a choice of inventing a new market position or entering an existing one the great uncertainty on the consequences of different actions leads them to rely on other organizations for information on how to compete making adoption of existing market positions likely their wish to avoid direct rivalry and maximize growth leads them to seek out information on new market positions with few incumbents as a result recently innovated market positions are mimetically adopted by organizations that can easily observe previous adoptions and see them as relevant to their market situations increasing the market differentiation this theory is tested and supported by analysis of the spread of new radio formats in the united states 1998 john wiley sons ltd

refraining from imitation professional resistance and limited diffusion in a financial market why do some practices not spread although this is an important question for both diffusion theorists and those interested in institutional change we know surprisingly little about the limitations on diffusion because most diffusion studies sample on successful diffusion i address the question of why some practices fail to spread by introducing the concept of a deviance discount a deviance discount is a systematic downgrading of the observed adoption performance of controversial practices which limits the contagion of such practices i test and find qualitative and quantitative support for my thesis in the product introduction behavior of swedish mutual fund firms my findings hold implications for diffusion theory and theories of endogenous institutional change

policy as myth and ceremony the global spread of stock exchanges 1980 2005 we examine the antecedents and consequences in developing countries of creating a national stock exchange a core technology of financial globalization we study local conditions and global institutional pressures in the rapid spread of exchanges since the 1980s and examine how conditions at the point of adoption affected exchanges subsequent vibrancy little prior research connects the process of diffusion with the operational performance of adopted policies we find that international coercion was associated with more ceremonial adoption but that contrary to expectations common in institutional research contagion processes via peer groups and normative emulation of prestigious actors enhanced vibrancy economic globalization provides a generative context in which to consider the policy implications of organizational theory and research globalization creates both opportunities and challenges for countries on the periphery of the world economy the central question for policy makers is what structures and institutions they should adopt to promote economic and social vibrancy notably waves of alternative theories and associated packages of reforms have swept over the globe in recent decades observing this process of global diffusion and often abandonment of policies and practices meyer boli thomas and raminrez 1997 extended analyses of myth and ceremony at the organization level to the nation state in their world society approach a core idea in this work is that coercion and mimicry of peers or competitors typically based in a substrate of network ties often

international new ventures revisiting the influences behind the born global firm there is a small but theoretically important literature on born globals or international new venture firms that positions itself in contrast to the more established sequential international entry literature in this paper we examine the pattern of entry into international markets for a set of international new ventures and show that they need not be a distinct breed of firms as previous research has portrayed absent a specific technological advantage the decision for a new venture to internationalize at inception is influenced by the size of its home market and by its production capacity as well as by cultural and economic forces that also influence other more traditional firms that stage their entry into international markets most importantly we demonstrate that the decision to internationalize or not should be considered jointly with the capacity allocation decision to specific international markets as analysing these separately may lead to biased results

positive and negative feedback effects in competition for dominance of network business systems this paper extends the existing research on the interplay of positive and negative feedback dynamics in the competition for business system dominance by building on an analysis of the digital television launch in the united kingdom we find that the expectation of network externalities intensifies competition causing strong negative feedback effects to emerge actions aimed at improving one s position are systematically imitated and pre emptied pressure builds up in the business system and only when the weakest firms exit the positive feedback effects are unleashed in their full magnitude our findings contribute to an improved understanding of institutional dynamics in new technology introduction

the political economy of monetary reform proposals to reform money and banking in the wake of the recent crisis appeal to populist politics on the left and the right if banks caused the crisis then their power must be curtailed to prevent a recurrence many of these proposals echo ideas which gained attention in the wake of the great depression the purpose of this paper is to consider proposals for reform of money and banking current in canada in the 1930s in particular plans for social credit and for social reconstruction some of which were translated into policy while both sets of ideas involved a markedly increased role for the state in money and banking the underlying ontology political philosophy and theoretical rationale were rather different the result was different views as to the nature of the problem and the feasibility of different policy solutions

mimetic and experiential effects in international marketing alliance formations of us pharmaceuticals firms an event history analysis alliances are recognized as an indispensable tool for managers operating in a global business environment and as a fundamental stage of the internationalization process of the firm drawing on a co evolutionary framework this article investigates the mimetic and experiential effects in international alliance formation we focus on a critical unresolved issue in the literature what is the role of mimetic behavior and previous alliance experience in mitigating the uncertainty associated with engaging in cross border operations an event history analysis of 792 international marketing alliance formations initiated by 317 firms in the us pharmaceutical industry is employed to test the hypotheses the findings of two different hazard rate models reveal significant complex effects of density and cross border alliance experience on the propensity to engage in new international marketing alliances

charting the territory recombination as a source of uncertainty for potential entrants in this paper we conceptualize categories as regions of a cognitive map that structure the market and guide the investment decisions of potential entrants i e of new and established organizations we advance that as a category appears altered via incumbents acts of recombination potential entrants face market specific uncertainty and are discouraged to invest in that category these negative effects of recombination on market entries are however mitigated at increasing values of category status we test our arguments in the market for electronic music the analyses of product and organizational entries in music styles between 1978 and 2011 lend support to our arguments

some puzzles about money finance and the monetary circuit this paper discusses three puzzles about money and finance having to do with the velocity of circulation the marxian concept of the monetary circuit and the deceptively simple question of whether there is enough money in existence at any point in time to purchase the full value of output these issues take on particular significance at times of economic and financial crisis but have often been neglected by the mainstream of the economics profession leaving the field to keynes s brave heretics

the structure of competition how competition between one s rivals influences imitative market entry this paper investigates how the pattern of encounters between a firm s competitors affects the firm s inclination to follow its competitors into a new market we theorize that direct encounters between a firm s rivals lead to a herding effect making imitative market entry more likely past mutual forbearance between a firm s competitors resulting from asymmetric multimarket competition further strengthens this herding effect by enhancing the firm s expectations of market attractiveness in contrast aggressive past rivalry between the competitors resulting from symmetric multimarket contact dampens these expectations producing a competition effect that makes herding less probable we test our idea in two distinct contexts the chinese pharmaceutical industry and the taiwanese computer hardware industry and find consistent support in both settings we discuss how our analysis of what we call the structure of competition can be extended to research on other forms of firm behavior

running for the exit community cohesion and bank panics bank panics attract scholarly interest because they reflect distrust of each bank that experiences a run as a result of diffusion of information rumors about such bank runs trigger additional runs elsewhere however the contagion of bank runs is highly selective for reasons that are unrelated to the financial strength of the individual banks this presents a puzzle that extant theories on institutions and reputations cannot fully explain to solve this puzzle we turn to the characteristics of the community in which the banks operate we develop theory on how communities with diverse affiliation structures and economic inequality have weaker community cohesion and communication making such communities less likely to experience widespread distrust and hence bank runs we test hypotheses on the effects of community ethnic diversity national origin diversity religious diversity and wealth inequality using data from the great bank panic of 1893 and we find strong community effects on bank runs these f

optimal strategies for carbon reduction at dual levels in china based on a hybrid nonlinear grey prediction and quota allocation model abstract in this research a hybrid nonlinear grey prediction and quota allocation model hngp qam wasdeveloped for supporting optimal planning of china s carbon intensity reduction at both departmentaland provincial levels in 2020 at such dual levels hngp qam can not only help forecast carbon intensityand its uctuations over the concerned period but also facilitate the identi cation of china s carbonintensity reduction target in 2020 and the corresponding quotas for minimizing the total abatement cost two scenarios were developed based on multiple governmental policies and allocation schemes amongprovinces and departments the results showed that the total abatement cost would be 92 07 and98 93 10 9 as well as 180 57 and 194 19 10 9 rmb it is another shortname for china yuan for pro vincial and departmental allocation schemes under the reduction ratios of 40 and 45 respectively furthermore the west the east and the central china would be allocated the emission assignments thatwould be accounting for 48 53 28 26 and 23 21 of the total national emission reduction respectively the obtained results were particularly useful for multi level governments in providing information toidentify the carbon intensity reduction target conducting emission reduction assignments amongprovinces and departments as well as supporting relevant policy making the results also suggested thatthe developed hngp qam be applicable to similar engineering and planning problems 2014 elsevier ltd all rights reserved

confidence in imitation niche width strategy in the uk automobile industry our study examines the imitation behavior of uk automobile manufacturers from 1894 to 1981 and supports previous studies on interorganizational imitation by showing that manufacturers tend to imitate other manufacturers that are similar we also find that the degree of confidence manufacturers have in their imitating behavior affects the intensity of that behavior where an organizations confidence is determined by the variance of the routines used by its reference group and the number of firms in the reference group our results show that 1 manufacturers whose reference groups showed large variance in niche width changes during the previous year are less likely to imitate the mean of those changes 2 manufacturers who have large reference groups are more likely to imitate the changes and 3 the negative effect of variance on the imitating behavior is strengthened as the number of reference organizations increases

decomposing uncertainty and its effects on imitation in firm exit decisions this study examines the effects of different uncertainty types on interorganizational imitation in firm exit decisions we draw on herding models to conceptualize exit decisions as being based on a firm s private information which the firm updates with information inferred from observing the actions of others we posit that different types of uncertainty differentially affect this observational learning process in particular we propose that certain uncertainty types attenuate rather than foster observational learning and subsequent imitation we test this theory using a 29 year panel data set on the exit of private venture capital firms our results indicate that observational learning does influence imitation in firm exit decisions and they also suggest that a common belief that uncertainty enhances imitation does not apply to all types of uncertainty specifically we find that uncertainty fosters imitation only when it is idiosyncratic to the firm uncertainties that are common to all firms in contrast actually reduce reliance on observational learning by decomposing uncertainty into different types and explicating their effects on imitation we demonstrate that this relationship is more nuanced than previously assumed and in addition highlight the role of deliberate information processing in imitation

government monetary and fiscal operations generalising the endogenous money approach the traditional endogenous money approach can be generalised substantially by including the insights of modern money theory regarding the necessary coordination of fiscal and monetary policies a monetarily sovereign government is composed of two entities involved in the issuance and redemption of government monetary instruments as such one should include the role of the treasury in monetary policy and the role of the central bank in fiscal policy the paper suggests a simple way to model that interaction shows some of the theoretical insights that can be drawn from that interaction and illustrates the relevance of that interaction with the monetary and fiscal practices of the us treasury and the federal reserve over the past century times of stress in the monetary system such as the recent great recession usually bring to light more forcefully this necessary interaction

firm and country level trade offs and contingencies in the evaluation of foreign investment the semiconductor industry 1994 2002 this paper examines the joint impact of firm and country level factors on the international plant location decisions of semiconductor firms from 1994 2002 we find that these factors interact to influence the location decisions of firms investing abroad in a given host country firms with more advanced technological capabilities are more likely to make investments in countries with greater technological sophistication but not in politically hazardous countries where they face greater expropriation hazards firms with less advanced technology are more willing to accept a trade off between country level political hazards and technological sophistication firms also trade off own versus other firm experience as sources of critical knowledge regarding the foreign investment environment