The term "post-Keynesian" was first used to refer to a distinct school of economic thought by Eichner
and Kregel (1975)
and by the establishment of the Journal of Post Keynesian Economics
in 1978. Prior to 1975, and occasionally in more recent work, post-Keynesian
could simply mean economics carried out after 1936, the date of Keynes's General Theory
Post-Keynesian economists are united in maintaining that Keynes' theory is seriously misrepresented by the two other principal Keynesian schools: neo-Keynesian economics
, which was orthodox in the 1950s and 60s, and new Keynesian economics
, which together with various strands of neoclassical economics
has been dominant in mainstream macroeconomics
since the 1980s. Post-Keynesian economics can be seen as an attempt to rebuild economic theory in the light of Keynes' ideas and insights. However, even in the early years, post-Keynesians such as Joan Robinson sought to distance themselves from Keynes, and much current post-Keynesian thought cannot be found in Keynes. Some post-Keynesians took a more progressive view than Keynes himself, with greater emphases on worker-friendly policies and redistribution. Robinson, Paul Davidson and Hyman Minsky
emphasized the effects on the economy of practical differences between different types of investments, in contrast to Keynes' more abstract treatment.
The theoretical foundation of post-Keynesian economics is the principle of effective demand
, that demand matters in the long as well as the short run, so that a competitive market economy has no natural or automatic tendency towards full employment
Contrary to the views of new Keynesian economists working in the neoclassical tradition, post-Keynesians do not accept that the theoretical basis of the market's failure to provide full employment is rigid or sticky prices
or wages. Post-Keynesians typically reject the IS–LM model
of John Hicks
, which is very influential in neo-Keynesian economics, because they argue endogenous bank lending to be more significant than central banks' money supply for the interest rate.
The contribution of post-Keynesian economics
has extended beyond the theory of aggregate employment to theories of income distribution, growth, trade and development in which money demand plays a key role, whereas in neoclassical economics these are determined by the forces of technology, preferences and endowment. In the field of monetary theory, post-Keynesian economists were among the first to emphasise that money supply responds to the demand for bank credit,
so that a central bank
cannot control the quantity of money, but only manage the interest rate by managing the quantity of monetary reserves.
This view has largely been incorporated into monetary policy
which now targets the interest rate as an instrument, rather than the quantity of money. In the field of finance, Hyman Minsky put forward a theory of financial crisis based on financial fragility
, which has received renewed attention. 
follows Keynes closely in placing time and uncertainty
at the centre of theory, from which flow the nature of money and of a monetary economy. Monetary circuit theory
, originally developed in continental Europe, places particular emphasis on the distinctive role of money as means of payment. Each of these strands continues to see further development by later generations of economists.
Much post-Keynesian research is published in the Review of Keynesian Economics
(ROKE), the Journal of Post Keynesian Economics
(founded by Sidney Weintraub
and Paul Davidson), the Cambridge Journal of Economics
, the Review of Political Economy
, and the Journal of Economic Issues
There is also a United Kingdom academic association, the Post Keynesian Economics Society
(PKES). This was previously called the Post Keynesian Economics Study Group (PKSG) but changed its name in 2018. In the UK, post-Keynesian economists can be found in:
- The New School, New York City
- The University of Massachusetts Amherst
- The University of Utah, Salt Lake City
- Bucknell University, Lewisburg, Pennsylvania
- Denison University, Granville, Ohio
- Levy Economics Institute at Bard College, Annandale-on-Hudson, New York
- University of Missouri–Kansas City
- University of Denver
- Colorado State University, Fort Collins
- The University of Massachusetts Boston
- John Jay College of Criminal Justice at City University of New York, New York City
In Germany, post-Keynesianism is very strong at the Berlin School of Economics and Law 
and its master's degree course: International Economics [M.A.]. Many German Post-Keynesians are organized in the Forum Macroeconomics and Macroeconomic Policies.
University of Newcastle
Major post-Keynesian economists
Major post-Keynesian economists of the first and second generations after Keynes include:
- ^ Skidelsky 2009, p. 42
- ^ Financial markets, money and the real world, by Paul Davidson, pp. 88–89
- ^ Lavoie, Marc (2006), "Post-Keynesian Heterodoxy", Introduction to Post-Keynesian Economics, Palgrave Macmillan UK, pp. 1–24, doi:10.1057/9780230626300_1, ISBN 9781349283378
- ^ Dequech, David (2012). "Post Keynesianism, Heterodoxy and Mainstream Economics". Review of Political Economy. 24 (2): 353–368. doi:10.1080/09538259.2012.664364. ISSN 0953-8259.
- ^ Eichner and Kregel 1975
- ^ King 2002, p. 10
- ^ Hayes 2008[page needed]
- ^ Arestis 1996
- ^ Palley, Thomas (1 January 2008). "Macroeconomics without the LM: A Post-Keynesian Perspective". PERI Working Papers.
- ^ For a general introduction see Holt 2001
- ^ Kaldor 1980
- ^ Palley, Thomas (April 2010). "The Limits of Minsky's Financial Instability Hypothesis as an Explanation of the Crisis". Monthly Review. 61.
- ^ Minsky 1975[page needed]
- ^ Robinson 1974
- ^ Pasinetti 2007
- ^ Harcourt 2006, Pasinetti 2007
- ^ Davidson 2007
- ^ "HWR Berlin - Campus4U". campus4u.hwr-berlin.de.
- ^ Hein, Eckhard; Priewe, Jan (2009). "Forum: The Research Network Macroeconomics and Macroeconomic Policies (FMM) – Past, present and future". European Journal of Economics and Economic Policies: Intervention. 6 (2): 166–173. doi:10.4337/ejeep.2009.02.04.
- Arestis, Philip (1996). "Post-Keynesian economics: towards coherence". Cambridge Journal of Economics. 20: 111–135. doi:10.1093/oxfordjournals.cje.a013604.
- Davidson, Paul (2007). John Maynard Keynes. Palgrave Macmillan.
- Eichner and Kregel (1975). "An Essay on Post-Keynesian Theory: A New Paradigm in Economics". Journal of Economic Literature. 13: 1293–1314.
- Harcourt, Geoff (2006). The Structure of Post-Keynesian Economics. Columbia University Press.
- Hayes, M.G. (2008). The Economics of Keynes: A New Guide to the General Theory. Edward Elgar Publishing. ISBN 978-1-84844-056-2.
- Kaldor, Nicholas (1980). "Monetarism and UK economic policy". Cambridge Journal of Economics. 4 (3): 271–292. doi:10.1093/oxfordjournals.cje.a035457.
- King, J.E. (2002). A history of post Keynesian economics since 1936. Edward Elgar Publishing. ISBN 978-1-84064-420-3.
- Minsky, Hyman (1975). John Maynard Keynes. Columbia University Press.
- Pasinetti, Luigi (2007). Keynes and the Cambridge Keynesians. Columbia University Press.
- Robinson, Joan; Eatwell, John (1974). An Introduction to Modern Economics (2 ed.). McGraw Hill.
- Skidelsky, Robert (2009). Keynes: The Return of the Master. Allen Lane. p. 42. ISBN 978-1-84614-258-1.
Last edited on 27 April 2021, at 09:53
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