The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Post Keynesian Economics

  • J. E. King
Reference work entry


Post Keynesian economics is a dissident school in macroeconomics based on a particular interpretation of Keynes. A brief intellectual history of Post Keynesian ideas is provided, along with a discussion of some important methodological questions. Three short-period macro models are outlined: Paul Davidson’s aggregate supply–aggregate demand model, Michal Kalecki’s two-class model, and Hyman Minsky’s financial instability hypothesis. The Post Keynesian approach to economic growth is shown to focus on the expansion of aggregate demand, with a distinctive approach to monetary, fiscal and other dimensions of macroeconomic policy. In conclusion the future prospects of Post Keynesian economics are assessed.


Administered prices American Economic Association Animal spirits Asset price inflation Balance of payments constraint Baran P. A. Barter Behavioural macroeconomics Bounded rationality Bubbles Budget deficits Business cycle theory Cambridge capital controversies Capital accumulation Capitalism Capital–labour substitution Central banks Class Cost-push inflation Critical realism Deflation Effective demand Endogenous growth Endogenous money Entrepreneurship Ergodicity and non-ergodicity in economics European Central Bank Evolutionary economics Explanation Financial regulation Fiscal consolidation Floating exchange rates Functional finance Fundamentalist Keynesians General equilibrium Government failure Gross substitution Harcourt G. Harrod–Domar growth model Hedging Hicks J. R. Hysteresis Inequality Income distribution Income effects Inflation Institutional economics International financial institutions Investment decisions Involuntary unemployment IS–LM Justice Kahn R. F. Kaldor N. Kalecki M. Keynes J. M. Labour supply Lending controls Lexicographic preferences Liquidity preference Long run and short run Lucas R. Marginal productivity theory Market failure Market imperfections Market power Marx K. H. Meade J. E. Means G. Methodology Microfoundations Minsky H. Monetarism Monetary policy Money illusion Myopia National debt Neoclassical growth theory Neoclassical synthesis Neutral money axiom New Classical Economics New Classical Macroeconomics New Keynesian Economics Open-system thinking Paradox of costs Paradox of thrift Phillips curve Political business cycles Ponzi finance Post Keynesian economics Post-Walrasian theory Price rigidity Prices and incomes policies Profit rate Quantity theory of money Rational expectations Representative agents Reserve requirements Robinson J. V. Savings propensities Say’s Law Solow R. Speculation Sraffa P. Stability and Growth Pact Steindl J. Stocks and flows Structural adjustment Structural change Stylized facts Substitution effects Sweezy P. M. Taylor rule Trade unions Transformational growth Uncertainty Wage rigidity Washington Consensus Weintraub, S. 

JEL Classifications

B22 B59 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • J. E. King
    • 1
  1. 1.