Theoretical foundations of the international interdependence of growth regimes: price system, income–demand linkage, and quantity adjustment

This paper elucidates the theoretical foundations of the “growth regime” and its international interdependence, based on the results of recent research on the régulation theory and the post-Keynesian theory (Boyer, Economie politique des capitalismes: Théorie de la régulation et des crises. La Découverte, Paris, 2015; Lavoie, Post-Keynesian economics: new foundations, 2nd edn. Edward Elgar, Cheltenham, 2022). In so doing, the theoretical analyses of price determination and quantity adjustment are used as a fruitful contribution of current evolutionary and post-Keynesian economics. In particular, this pioneering analysis is based on the Shiozawa–Morioka–Taniguchi theory (SMT theory) (Shiozawa et al. Microfoundations of evolutionary economics. Springer, 2019). Furthermore, we also consider the dynamics of “growth regime,” paying attention to the macro linkages between income distribution and demand formation that M. Lavoie emphasizes (Lavoie, Post-Keynesian economics: New foundations, 2nd edn. Edward Elgar, Cheltenham, 2022). From this theoretical perspective, this paper attempts to theoretically examine the international Leontief-multiplier process and the international Keynes-multiplier process that mediate the international interdependence of “growth regimes,” while considering their dynamic processes with the time dimension. In this way, we aim to develop the theoretical foundations of the régulation theory and the post-Keynesian theory.