A Heterodox Analysis of International Exchange and Employment Policies

Abstract

The refugee crisis sourcing from the Middle East has been haunting Europe. Although the warfare caused this crisis, well-directed and well-timed international exchange and employment policies can be the solution. The aim of this thesis is to analyze three heterodox approaches to the international trade, exchange rates, prices and employment policies, and try to find a path to the solution of the refugee crisis. The Institutional and Post-Keynesian approaches, the Modern Monetary Theory and the Marxian economics have different perspectives and policy recommendations to the international exchange and employment policies. After analyzing these approaches, I conclude that the open economy models can be beneficial and create a solution to the refugee crisis if full employment can be achieved and sustained. Because of the limited scope of this thesis, I could only reach for a certain depth of each school of economic thought.