Working from Keynes's revolutionary analysis of a money-using entrepreneurial economy, this important new book presents a real world alternative to the basic macroeconomic analytical model. In Post Keynesian Macroeconomic Theory, Paul Davidson addresses the limitations of conventional mainstream New Classical and New Keynesian analysis for developing successful economic policies.Important features of this book include an aggregate supply and demand analysis that does not rely on aggregate supply imperfections, such as inflexible wages and prices or co-ordination failures, to demonstrate the existence of involuntary unemployment; the application of Keynes's original 1936 closed economy analysis to an open economy engaged in significant international trade in order to resolve international balance of payments problems; and the argument that both old and new Keynesian analytical models were logically incompatible to Keynes's analysis, and so led to unsuccessful policies.
Students are encouraged to return to the path of Keynes's analysis which can be applied to understand real world economic problems and to design policies to resolve them. Unlike other textbooks, Post Keynesian Macroeconomic Theory challenges the orthodoxy, providing students of economics with a useful analytical framework as well as a clear understanding of how and why mainstream economics has gone wrong.
- ISBN10 1852788356
- ISBN13 9781852788353
- Publish Date 1 January 1994
- Publish Status Out of Print
- Out of Print 9 June 2011
- Publish Country GB
- Imprint Edward Elgar Publishing Ltd
- Format Hardcover
- Pages 320
- Language English