In this paper, we study mathematically the performances of alternative two macrodynamic models, that is, the model with inactive Monetarist fiscal and monetary policy rules and the model with active Keynesian stabilization fiscal and monetary policy mix. It is shown that the dynamic stability of the Monetarist model is not ensured unless some restrictive conditions are satisfied, and the Monetarist model produces endogenous cyclical fluctuations of the main variables under some situations. Then, we argue that the active Keynesian fiscal and monetary stabilization policy mix is required if the inactive Monetarist fiscal and monetary policies cannot stabilize the macroeconomy, and study the dynamic properties of such a model mathematically.

Arghiri Emmanuel criticized and reconstructed Ricardo's trade theory, and concluded that the imposition of international division of labor leads to the exploitation of developing countries by developed countries. This paper reconsiders his conclusions using the Sraffa system. In the Ricardo-Marx type model, the primary factor of production was only labor. Therefore, in the second half of the paper, we construct a model that considers not only labor but also capital and land as the original factors of production, and examine the impact of trade and international capital movement on developed and developing countries.

The interaction between product and labor markets was one of the main themes of Keynes's The General Theory. However, Keynes's careless adoption of the first postulate of the classical economics caused great confusion. In particular, the perfect competition implied by the first postulate is inconsistent with the Keynes’s macroeconomics. This paper presents the model that incorporates imperfect competition in product and labor markets into one and discusses the relationship between the wage rate and the employment level.

This paper introduces the Razmi (2016) model, including technology transfers from the postindustrial Global North regarding environmental technologies to the comparatively underdeveloped Global South. We examine the varying impact of regulations and technology transfer policies for greenhouse gas emissions and pollution exports with and without an international permit trading market. The main conclusions are as follows. With a sufficient international permit trading market, policies that promote technology transfer to the South or reduce pollution exports increase the North–South gap. Such policies reduce the North–South gap without an international emissions trading market. In sum, specific environmental policies and North–South interests differ depending on the presence or absence of an international permit trading market.