This book offers an accessible introduction to post-Keynesian economics, showing that there is an alternative to neoclassical economics and its free-market economic policies. Post-Keynesian economics is founded on realistic assumptions and stylized facts, such as interest targeting by central banks or constant average variable costs in manufacturing and services. The author shows how these more realistic foundations give rise to macroeconomic implications that are entirely different from those of received wisdom with regards to employment, output growth, inflation and monetary theory. For instance, the author demonstrates that higher minimum wages or real wages can increase both labour employment and the corporate profit rates, and that faster output growth need not lead to higher inflation.
Marc Lavoie's superb Introduction to Post-Keynesian Economics will be accessible to students...the book remains highly readable and covers many references for further readings. It will also be extremely valuable for researchers who are not yet familiar with Post-Keynesian methodology, microeconomics, monetary and macroeconomics, and the approaches to distribution and growth of this school of thought.' - Intervention - European Journal of Economics and Economic Policies
List of Figures
List of Tables
List of Boxes
Preface to the English Edition
Introduction
PART 1: THE POST-KEYNESIAN HETERODOXY
Who are the Post-Keynesians?
The Characteristics of Heterodox Economics
The Essential Characteristics of Post-Keynesian Economics
The Various Strands of Post-Keynesian Economics
PART 2: HETERODOX MICROECONOMICS
Consumer Choice Theory
Oligopolistic Markets and the Objectives of Firms
The Shape of Cost Curves
Price Setting
The Determinants of the Costing Margin
Conseuqences for Macroeconomic Theory
PART 3: A MACROECONOMIC MONETARY CIRCUIT
Main Characteristics of Post-Keynesian Monetary Analysis
The Relationship between Commerical Banks and the Central Bank
The Relationship between Banks and Firms
A Systemic View of the Monetary Economy
PART 4: THE SHORT-PERIOD: EFFECTIVE DEMAND AND THE LABOUR MARKET
Effective Demand and its Components
The Kaleckian Model
Further Developments of the Kaleckian Model
PART 5: THE LONG-PERIOD: OLD AND NEW GROWTH MODELS
The Old Post-Keynesian Growth Models
The New Kaleckian Models
Extensions and Criticism of the Kaleckian Model
PART 6: GENERAL CONCLUSION
Bibliography
Index
MARC LAVOIE is Professor in the Department of Economics at the University of Ottawa, Canada. He has been Visiting Professor at Curtin University, Australia, and at the universities of Bordeaux, Grenoble, Lille, Limoges, Nice, Rennes, Paris-1 and Paris-13. His main research areas are in post-Keynesian and monetary economics. He has written over 130 journal articles or book chapters as well as authoring Foundations of Post-Keynesian Economics and co-edited Central Banking in the Modern World.
Description
This book offers an accessible introduction to post-Keynesian economics, showing that there is an alternative to neoclassical economics and its free-market economic policies. Post-Keynesian economics is founded on realistic assumptions and stylized facts, such as interest targeting by central banks or constant average variable costs in manufacturing and services. The author shows how these more realistic foundations give rise to macroeconomic implications that are entirely different from those of received wisdom with regards to employment, output growth, inflation and monetary theory. For instance, the author demonstrates that higher minimum wages or real wages can increase both labour employment and the corporate profit rates, and that faster output growth need not lead to higher inflation.
Reviews
Marc Lavoie's superb Introduction to Post-Keynesian Economics will be accessible to students...the book remains highly readable and covers many references for further readings. It will also be extremely valuable for researchers who are not yet familiar with Post-Keynesian methodology, microeconomics, monetary and macroeconomics, and the approaches to distribution and growth of this school of thought.' - Intervention - European Journal of Economics and Economic Policies
Contents
List of Figures
List of Tables
List of Boxes
Preface to the English Edition
Introduction
PART 1: THE POST-KEYNESIAN HETERODOXY
Who are the Post-Keynesians?
The Characteristics of Heterodox Economics
The Essential Characteristics of Post-Keynesian Economics
The Various Strands of Post-Keynesian Economics
PART 2: HETERODOX MICROECONOMICS
Consumer Choice Theory
Oligopolistic Markets and the Objectives of Firms
The Shape of Cost Curves
Price Setting
The Determinants of the Costing Margin
Conseuqences for Macroeconomic Theory
PART 3: A MACROECONOMIC MONETARY CIRCUIT
Main Characteristics of Post-Keynesian Monetary Analysis
The Relationship between Commerical Banks and the Central Bank
The Relationship between Banks and Firms
A Systemic View of the Monetary Economy
PART 4: THE SHORT-PERIOD: EFFECTIVE DEMAND AND THE LABOUR MARKET
Effective Demand and its Components
The Kaleckian Model
Further Developments of the Kaleckian Model
PART 5: THE LONG-PERIOD: OLD AND NEW GROWTH MODELS
The Old Post-Keynesian Growth Models
The New Kaleckian Models
Extensions and Criticism of the Kaleckian Model
PART 6: GENERAL CONCLUSION
Bibliography
Index
Authors
MARC LAVOIE is Professor in the Department of Economics at the University of Ottawa, Canada. He has been Visiting Professor at Curtin University, Australia, and at the universities of Bordeaux, Grenoble, Lille, Limoges, Nice, Rennes, Paris-1 and Paris-13. His main research areas are in post-Keynesian and monetary economics. He has written over 130 journal articles or book chapters as well as authoring Foundations of Post-Keynesian Economics and co-edited Central Banking in the Modern World.
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