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Home / Tag Archives: Post Keynesian Economics

Tag Archives: Post Keynesian Economics

Why the fantasy world of neoclassical economics is undermining our wellbeing — Richard Murphy

Richard Murphy comments on Peter Bofinger's article, linked to here at MNE yesterday. Progressives and others on the so-called left need to read and understand this. The right won't pay any attention to it since it is Keynesian.Tax Research UKWhy the fantasy world of neoclassical economics is undermining our wellbeingRichard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge...

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‘Fridays for Keynesianism’ — Peter Bofinger

Excellent summary of the recognition of the classical fallacy by Keynes, what followed, and why neoclassical economics is proving so difficult to dislodge even though it has been discredited. Note: This is not the only fallacy that plays a part in neoclassical assumptions. The fallacy of composition is another, as Keynes also observed.Social Europe'Fridays for Keynesianism' Peter Bofinger | Professor of Economics at Würzburg University and a former member of the German Council of Economic...

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George A. Akerlof — What They Were Thinking Then: The Consequences for Macroeconomics during the Past 60 Years

This article begins with a review of the two main textbook approaches that had evolved by the early 1960s to incorporate the musings of Keynes: the Keynesian cross from Samuelson’s (1948) introductory textbook and the complete, well fleshed-out model in Gardner Ackley’s (1961) advanced macro textbook. This Keynesian- neoclassical synthesis followed a pattern set by Hicks (1937) by focusing on certain elements of Keynes, while setting aside others. Some potential weaknesses of the specific...

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The State Of MMT? — Brian Romanchuk

I have been catching up after travelling to the Modern Monetary Theory (MMT) Conference in Stony Brook, and see that there was a full issue on MMT in the Real-World Economic Review. Since I referred to the relationship between MMT and Post-Keynesian Economics in my talk, I might as well update my comments based on that RWER issue.... I agree with Brian. Tempest in a teapot with the world falling apart around us.  People taking themselves too seriously, but that is the story in most of...

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Keynes’ Life: 1929

I give an account below of Keynes life in 1929, the year in which the Great Depression began.January–May 1929 Keynes taught at Cambridge in the first half of the year. The teaching periods at Cambridge were divided into three terms:October–December – Michaelmas January–March – Lent or January term April–June – Easter term.On 18 January 1929, Ludwig Wittgenstein returned to Cambridge, and Keynes met him when he arrived, and allowed Wittgenstein to share his rooms at Cambridge until February...

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Lars P. Syll — Kalecki and Keynes on the loanable funds fallacy

Banks are not intermediaries between savers and borrowers, and finance is not allocating existing savings to future investment. The opposite is true. Bank credit is self-funding; in credit extension, loans (assets) create deposits (liabilities). In finance as allocation of capital, investment creates saving.Lars P. Syll’s BlogKalecki and Keynes on the loanable funds fallacyLars P. Syll | Professor, Malmo University

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Jörg Bibow — On Modern Monetary Theory and Some Odd Twists and Turns in the Evolution of Macroeconomics

Mainstream neoclassical economics is hooked on the idea of individual worker-savers as prime movers in capitalist market economies. As workers, individuals choose how much to work, determining the economy’s output; as savers, they determine how much of that output takes the shape of the economy’s capital investment. With banks as conduits channeling saving flows into investment, firms churn inputs into outputs that match worker-savers’ tastes. In this way, the neoclassical world gets shaped...

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Brian Romanchuk — Primer: Post-Keynesian Inflation Theory Basics

This article is an introduction to the post-Keynesian approach to inflation. It is largely based on Section 8.1.1 of Professor Marc Lavoie's Post-Keynesian Economics: New Foundations (link to my review). Similar to the work on stock-flow consistent models, we start out with what is essentially an accounting identity: a statement that is true by definition. We need to understand the implications of the accounting identity before we worry about the behavioural aspects (which are not pinned...

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