• Table of Contents
    • Abstract
    • Keywords
    • Article
      • A brief intellectual history
      • Methodology
      • Macroeconomic theory: the short period
        • The fundamentalist Keynesian model
        • The Kaleckian model
        • The financial instability hypothesis
        • Some comparisons
      • Macroeconomic theory: the long period
      • Post Keynesian microeconomics
      • Economic policy
        • Monetary policy
        • Fiscal policy
        • Prices and incomes policy
        • Other policy issues
        • Assessment and prospects
    • See Also
    • Bibliography
    • How to cite this article

Post Keynesian economics

J.E. King
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Post Keynesian economics is a dissident school in macroeconomics based on a particular interpretation of Keynes. A brief intellectual history of Post Keynesian ideas is provided, along with a discussion of some important methodological questions. Three short-period macro models are outlined: Paul Davidson's aggregate supply–aggregate demand model, Michal Kalecki's two-class model, and Hyman Minsky's financial instability hypothesis. The Post Keynesian approach to economic growth is shown to focus on the expansion of aggregate demand, with a distinctive approach to monetary, fiscal and other dimensions of macroeconomic policy. In conclusion the future prospects of Post Keynesian economics are assessed.
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Keywords

administered prices; American Economic Association; animal spirits; asset price inflation; balance of payments constraint; Baran, P. A.; barter; behavioural macroeconomics; bounded rationality; bubbles; budget deficits; business cycle theory; Cambridge capital controversies; capital accumulation; capitalism; capital–labour substitution; central banks; class; cost-push inflation; critical realism; deflation; effective demand; endogenous growth; endogenous money; entrepreneurship; ergodicity and non-ergodicity in economics; European Central Bank; evolutionary economics; explanation; financial regulation; fiscal consolidation; floating exchange rates; functional finance; fundamentalist Keynesians; general equilibrium; government failure; gross substitution; Harcourt, G.; Harrod–Domar growth model; hedging; Hicks, J. R.; hysteresis; inequality; income distribution; income effects; inflation; institutional economics; international financial institutions; investment decisions; involuntary unemployment; IS–LM; justice; Kahn, R. F.; Kaldor, N.; Kalecki, M.; Keynes, J. M.; labour supply; lending controls; lexicographic preferences; liquidity preference; long run and short run; Lucas, R.; marginal productivity theory; market failure; market imperfections; market power; Marx, K. H.; Meade, J. E.; Means, G.; methodology; microfoundations; Minsky, H.; monetarism; monetary policy; money illusion; myopia; national debt; neoclassical growth theory; neoclassical synthesis; neutral money axiom; New Classical Economics; New Classical Macroeconomics; New Keynesian Economics; open-system thinking; paradox of costs; paradox of thrift; Phillips curve; political business cycles; Ponzi finance; Post Keynesian economics; post-Walrasian theory; price rigidity; prices and incomes policies; profit rate; quantity theory of money; rational expectations; representative agents; reserve requirements; Robinson, J. V.; savings propensities; Say's Law; Solow, R.; speculation; Sraffa, P.; Stability and Growth Pact; Steindl, J.; stocks and flows; structural adjustment; structural change; stylized facts; substitution effects; Sweezy, P. M.; Taylor rule; trade unions; transformational growth; uncertainty; wage rigidity; Washington Consensus; Weintraub, S.
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Article

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How to cite this article

King, J.E. "Post Keynesian economics." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 01 November 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_P000135> doi:10.1057/9780230226203.1314

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