Keynes himself recognized that he had a number of predecessors, and it has been suggested that major elements of his approach were anticipated by others most notably, Michal Kalecki. In The General Theory Keynes argued that employment is determined by the aggregate demand for goods, which is in turn determined in a closed economy by consumption demand and investment demand.
This book is the second version of the text Foundations of Post-Keynesian Economic Analysis, which was published in He describes the text as "targeted mainly at honours students and masters students, but I am sure that PhD students can also benefit from it. Scope Of This Review The breadth of the topics within this book is so great that I will not attempt to address them here.
I expect that I will cover different topics it raises during later articles. Instead, I will focus on why I recommend it, and who would benefit from reading it. Additionally, I do not have a strong grasp of the many schools of thought within post-Keynesian economics, so I cannot judge whether all of them are being treated fairly.
Why Study Post-Keynesian Economics? The motivation for studying post-Keynesian economics is that it appears to offer the strongest description of macroeconomics. I worked as a senior quantitative interest rates analyst, and I had extensive experience with macro rates strategy.
However, coming as an outsider to economics, I was troubled by the ad hoc nature of economic analysis used in the financial markets, and the limited usefulness of research that was churned out by official bodies, such as central banks, At first, Hyman Minsky appeared to be one of the few economists whose writings offered useful insights.
It is only once I delved into this broader post-Keynesian literature it became clear why conventional economics was essentially useless for understanding developments in the macro economy. The "Keynesian" portion of the term "post-Keynesian" may raise ideological hackles.
I do not want to get involved in discussing the politics of post-Keynesian economics, but I would point out that it is distinct from the mainstream "Keynesian" economic consensus of the s and s. And if you are serious about following this line of study, this book or one similar is an invaluable resource.
That said, the book is not particularly cheap, nor is it light reading. It is definitely not an introductory work. The cost of the book came up on the discussions of this article when it was cross-posted to Seeking Alpha.
There is a soft cover version of the text which is quite a bit cheaper, but that version seemed to be only available in the U. It will hopefully be available elsewhere soon. I believe that this book is best suited for: Since various sections are partially reprinted from other publications, readers with a strong background in post-Keynesian economics would have to judge for themselves about the novelty of the contents.
I would view the book as a reference, and it may be best to read it in the order of your interest. In particular, I would suggest that someone new to post-Keynesian economics should read the first chapter last, or to skim over it.
It discusses the various schools of thought, and it would be best to see how they dealt with various subjects before worrying about how to classify them The difficulty level of the text varies depending on the subject.
The discussions of money and banking in Chapter 4 are straightforward, as they correspond to a straightforward subject at least if you approach the subject without blinkers. Conversely the discussion of "ontological versus epistemic uncertainty" in Chapter 2 is somewhat arcane. Some readers may have the opposite preferences than the reviewer.
This disparity is an additional reason why I would recommend reading the subjects in the order of interest. The stock-flow consistent models they develop in that text form a coherent introduction to macroeconomics.
What Is It About?Keynesian Economics is an economic theory of total spending in the economy and its effects on output and inflation developed by John Maynard Keynes. Economics, Keynesian BIBLIOGRAPHY  Keynesian economics  is the approach to macroeconomics that grew out of John Maynard Keynes’s work, especially his The General Theory of Employment, Interest and Money () written during the Great Depression .
Book Review: Post-Keynesian Economics (Lavoie) Post-Keynesian Economics: New Foundations by Marc Lavoie is a masterful overview of post-Keynesian economic thought. It is an academic text, and it is aimed at readers with a good understanding of economics already under their belt.
An Analysis Of The Application Of Keynesian Economics In Canada – Monetary And Fiscal Policy And The Economic Recovery Of The Late s. How the government of Canada transferred funds to the.
(Keynesian economics is a justification for the ‘New Deal’ programmes of the s.) 2. Fiscal Policy. Classical economics places little emphasis on the use of fiscal policy to manage aggregate demand.
Classical theory is the basis for Monetarism, which only concentrates on managing the money supply, through monetary policy. The terminology of demand-side economics is synonymous to Keynesian economics.
Keynesian economists believe the economy is best controlled by manipulating the demand for goods and services.