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The New Consensus on Monetary Policy and Its Post-Keynesian Critique

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Post-Keynesian Essays from Down Under Volume IV: Essays on Theory

Abstract

This chapter seeks to look at the underlying framework of the New Consensus models, providing a Post-Keynesian critique. In the light of this critique, the model is reformulated, with its basic structure intact, but with alternative post-Keynesian specifications of the Phillips curve being considered. It is shown that such modifications, either allow a long run trade-off between the rate of inflation and the level of output, the rate of capacity utilization and, therefore, unemployment, or, in our preferred specification, changes in output and capacity have no implications for inflation over a large range of capacity utilization.

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Authors
  1. Peter Kriesler
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  2. Marc Lavoie
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© 2016 Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile

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Kriesler, P., Lavoie, M. (2016). The New Consensus on Monetary Policy and Its Post-Keynesian Critique. In: Post-Keynesian Essays from Down Under Volume IV: Essays on Theory. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-47529-9_30

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  • DOI: https://doi.org/10.1057/978-1-137-47529-9_30

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  • Publisher Name: Palgrave Macmillan, London

  • Print ISBN: 978-1-137-47528-2

  • Online ISBN: 978-1-137-47529-9

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