Post Keynesian Macroeconomic Theory: A Foundation for Successful Economic Policies for the Twenty-First Century

Working from Keyness 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 Keyness 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 Keyness analysis, and so led to unsuccessful policies.
Students are encouraged to return to the path of Keyness 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.