Post-Keynesian economics (PKE) is an economic paradigm that stems from the work of economists such as John Maynard Keynes (1883-1946), Michal Kalecki (1899-1970), Roy Harrod (1900-1978), Joan Robinson (1903-1983), Nicholas Kaldor (1908-1986), and many others. The introduction of this term suggests that Keynesian style tactics of attempting to control the economy are a thing of the past. PKE has links to several other heterodox schools of thought, most importantly with Marxism and institutional economics, which also reject mainstream economics. PKE employs research methods that correspond to the principle of holism. Among others, the most important methods are formal macro modelling and econometric estimation, stock-flow consistent and agent-based modelling employing computer simulations, as well as institutional analyses and case studies. While inflation therefore is a usual outcome of the wage bargaining process even in “normal” times, it may be accelerated by sudden increases in the costs of inputs, e.g. Simple PK macro models can be static and focus on the marginal effects of changes in exogenous variables on economic outcomes in a goods market equilibrium. These institutions determine economic behaviour to a large extent, which is why PKE gives a certain priority to macro- and mesoeconomic analyses. PKE thus assumes that there is a potential economic equilibrium that is determined by monetary and real factors. This is important from a post-Keynesian perspective, since the object of analysis in PKE is a monetary production economy, as mentioned above. (2011): A Modern Guide to Keynesian Macroeconomics and Economic Policies, Cheltenham: Edward Elgar. New credit money is created to finance investment expenditures. Furthermore, both schools of thought reject Say’s law, though some Marxists only do so for the short run. (eds.) They rather make decisions based on rules of thumb, as they can deal better with incomplete and complex information. Marx understood crisis as deriving within the capitalist system and as the result of a breakdown within the process of capital accumulation brought upon by imbalances during process of accumulation. This way of thinking led to the discovery of several macroeconomic paradoxes. A good example of this organicistic approach is the PK theory of choice, in which consumption or other expenditure decisions (i.e. The overall awareness about ecological problems and, in particular, climate change have also had an influence on PKE. This project is brought to you by the Network for Pluralist Economics (Netzwerk Plurale Ökonomik e.V.). However, there are some implicit assumptions about the relationship between reality and scientific knowledge that are typical for PKE. The same has happened to Marxian economics, but with this twist. (2012), The Elgar Companion to Post Keynesian Economics, 2nd Edition, Cheltenham: Edward Elgar. In order to get there, the overarching political objective is to change the effectiveness of the state and the political-economic system. Davidson, P. (2011): Post Keynesian Macroeconomic Theory, Cheltenham: Edward Elgar. These models give an insight into the sometimes chaotic adjustment processes that happen in the real world and thus have a very different flavour than the tranquil and harmonious mainstream general equilibrium models. This paper compares Marx's economics with those by Sraffa, Keynes, Kalecki and Minsky. The economic core of mainstream economics is scarcity of resources, namely capital and labour. This volume will be of interest to those who wish to explore Marx’s economic theories through a non-ideological approach, as well as students of Marxist economics, post-Keynesian economics and the history of economic thought. The paper takes an "ex post" view on the matter and rather looks at the output side of the respective authors, but not at the input side. However, unlike neoclassical theory, assumptions about individual behaviour typically involve norm-oriented behaviour that is shaped by social institutions and social contexts. Wage and incomes policies should lead to steady nominal unit labour cost growth in line with the desired inflation rate. Year of publication: 2009 The term 'post-Keynesian economics" is being seen more frequently in literature (Lavoie & Macmillan, 2008). Keynes was one of the most typical products of the British bourgeoisie. workers, capitalists, rentiers), that determine to a large extent the economic behaviour of economic agents, social institutions (e.g. Essentially they are left-wing economists who want more state intervention because they strongly believe in the power of central banks and the power of money creation. US: University of Massachusetts Amherst, the New School for Social Research, New York, the University of Missouri, Kansas City, and at the University of Utah, Salt Lake City. Institutional analyses describe the structure, operation and connections of economic institutions and organisations, and what kind of regularities or tendencies arise from their interactions. The focus that is placed on different problems and research areas is strongly influenced by the developments of economies and societies, by fads and fashions, by the advancement of computer technology and, of course, by historical events. In this view sensible behaviour by individuals on the micro level can lead to unintended consequences on the macro level (see the paradoxes above for examples). It is defined by the view that the principle of effective demand as developed by J. M. Keynes in the General Theory (1936) and M. Kalecki (1933) holds in the short, as well as in the long run. It is defined by the view that the principle of effective demand as developed by J. M. Keynes in the General Theory(1936) and M. Kalecki (1933) holds in the short, as well as in the long run. Most post-Keynesian economists would subscribe to the idea of achieving a more socially just system, with full employment, low levels of income inequality and high levels of individual freedom. Year of publication: 2012 This conflict is caused by conflicting claims over the distribution of income between the main social classes, wage-earners in different industries or sectors, entrepreneurs and rentiers (i.e. Although PKE, like most other scientific disciplines, does not provide an elaborated philosophical ontology, its theories do imply presuppositions about the existence and nature of certain entities that make up economic reality. Close inspection reveals that it, perhaps surprisingly, shares some arguments with Post Keynesian and even Marxist theory. 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