2008/04/25 by J. E. King · 77 citations
Economics, Econometrics and Finance · #Economic Theory and Policy #Economics #Post-Keynesian economics #Keynesian economics #Aggregate demand #New Keynesian economics #Aggregate supply #Effective demand #Macro #Macroeconomics #Interpretation (philosophy) #Macroeconomic model #Business cycle #Monetary policy
paper · doi:10.1057/9780230226203.1314
published in The New Palgrave Dictionary of Economics, 532-539
openalex publication_date 2008/04/25 · openalex created_date 2025/10/10 · openalex updated_date 2026/04/15
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.