Charles, Sébastien and Lang, Dany and Asensio, Angel (2010): Post-Keynesian modelling: where are we, and where are we going to?
Download (190kB) | Preview
This paper presents the current “state of the art” of Post-Keynesian modelling, as well as the most important issues raised by it. We first present a new formal statement of the Keynes' model, highlighting the importance of the “static model of a dynamic process”, and insisting on the influence of “true uncertainty” and of the “views concerning the future.” The paper then analyses the three most important classes of Post-Keynesian contemporary models: the Kaleckian models of growth; the Minskian models showing the destabilizing impacts of financial variables on the economy; and the path-dependant models insisting on the nature of time in economics, and on the absence of any “natural” anchor. We argue that, whereas the current Post-Keynesian models have a lot in common with Keynes’ model, none of them encompasses all its rich and realistic properties, and a synthetic dynamic Post-Keynesian model is desirable, and has still to be framed. The main barriers to this synthesis are underlined.
|Item Type:||MPRA Paper|
|Original Title:||Post-Keynesian modelling: where are we, and where are we going to?|
|Keywords:||Post-Keynesian modelling; Keynes’ “static model of a dynamic process”; Kaleckian models; Minskian models; Models of path dependency|
|Subjects:||E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian
B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B40 - General
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E20 - General
|Depositing User:||Sebastien / S. CHARLES|
|Date Deposited:||05. May 2011 16:55|
|Last Modified:||12. Feb 2013 17:54|
Ambrosi, G. M. (2009) Keynes Pigou and the general Theory, revised manuscript (January 25, 2009) of the ‘Keynes Seminar’ lecture, held at Robinson College, Cambridge, 22 October 2008.
Asensio, A. (2008) The growing evidence of Keynes’s methodology advantage and its consequences within the four macro-markets framework”, presented at the 11th SCEME Seminar in Economic Methodology, Stirling. http://halshs.archives-ouvertes.fr/halshs-00189221/fr/
Asensio, A. (2011a) Equilibrium interest rate and financial transactions in Post Keynesian models: Pointing out some overlooked features, Intervention, forthcoming.
Asensio, A. (2011b) On Keynes's seminal innovation and related essential features -Revisiting the notion of equilibrium in The General Theory, in Cate, T. (Ed.), Keynes’ General Theory: Seventy-five years Later, Edward Elgar, 2011.
Bhaduri, M., Marglin, S. (1990) Unemployment and the real wage: the economic basis for contesting political ideologies, Cambridge Journal of Economics, 14: 375-393.
Blecker, R.A. (2002) Distribution, Demand, and Growth in Neo-Kaleckian Macro Models, in Setterfield, M. (ed.) Demand-Led Growth: Challenging the Supply-Side Vision of the Long Run, Northhampton MA: Edward Elgar
Cassetti, M. (2006) A note on the Long-Run Behaviour of Kaleckian Models, Review of Political Economy, 18(4): 497-508.
Chick, V. (1983) Macroeconomics after Keynes, MIT Press Cambridge, Massachusetts.
Chick, V., Caserta, M (1997) Provisional Equilibrium and Macroeconomic Theory, in Essays in honour of Geoff Harcourt, vol. 2., Markets, unemployment and economic policy, London and New York: Routledge, 223-37.
Chick, V., Tily, G. (2007) Transfiguration and death: Keynes’s monetary theory, Association of Heterodox Economics 9th Conference, University of the West of England, Bristol, 13-15, July.
Cross, R. (1993) On the Foundations of Hysteresis in Economic Systems, Economics and Philosophy, 9(1):53-74.
Cross, R. (1995) Is the Natural Rate Hypothesis Consistent With Hysteresis?, in Cross, R (ed)., The Natural Rate of Unemployment: Reflections on 25 Years of the Hypothesis, Cambridge: Cambridge University Press, 181-202.
Cross, R., Darby, J., Ireland, J., Piscitelli, L. (2000) Hysteresis and Unemployment: a Preliminary Investigation, Computing in Economics and Finance, 721.
Davidson, P. (2002) Financial markets, money and the real world, Cheltenham: Edward Elgar.
De Peretti, C., Lang, D. (2009) A Strong Hysteretic Model of Okun's Law: Theory and a Preliminary Investigation, International Review of Applied Economics, 23(4):445-62.
Duménil, G., Lévy, D. (1999) Being Keynesian in the Short Term and Classical in the Long Term: The Traverse to Classical Long-Term Equilibrium, Manchester School, 67(6), 684-716.
Dutt, A.K. (1997) On an Alleged Inconsistency in Aggregate-Supply/Aggregate-Demand Analysis, Eastern Economic Journal, 23(4):469-76.
Dutt, A.K. (2009) Path dependence, equilibrium and Economic Growth, International Papers in Political Economy, pp. 119-161.
Fontana, G., Setterfield, M. (2009) A simple (an teachable) macroeconomic model with endogenous money, in Fontana, G. and Setterfield, M. (eds), Macroeconomic theory and macroeconomic pedagogy, Palgrave Macmillan
Hallett, H.A., Piscitelli, L. (2002) Testing for hysteresis against nonlinear alternatives, Journal of Economic Dynamics and Control, 27(2):303-327.
Hayes, M.G. (2007) Keynes’s Z function, heterogeneous output and marginal productivity, Cambridge Journal of Economics, 31:741–53.
Kaldor, N. (1934) A Classificatory Note on the Determinateness of Static Equilibrium, Review of Economic Studies, l:122-36.
Katzner, D.W. (1999) Hysteresis and the Modeling of Economic Phenomena, Review of Political Economy, 11(2): 171-81.
Keynes, J.M. (1936) The general theory of employment, interest and money, London, Macmillan.
Lang, D. 2009, Hysteresis in Unemployment, VDM Verlag.
Lavoie, M. (1999) Fair Rates of Interest in Post-Keynesian Political Economy, University of Ottawa, http://aix1.uottawa.ca/~robinson/english/wp/fairratecla.pdf.
Lavoie, M. (2003) Kaleckian Effective Demand and Sraffian Normal Prices: towards a reconciliation, Review of Political Economy, 15(1):53-74.
Lavoie, M., Seccareccia, M. (2001) Minsky's Financial Fragility Hypothesis: A Missing Macroeconomic Link?, in Bellofiore, R. and Ferri, P. Financial Fragility and Investment in the Capitalist Economy, The Economic Legacy of Hyman Minsky, vol. 2, Cheltenham, U.K.: Edward Elgar, 76-96.
Mayergoyz I. D. (1991) Mathematical Models Of Hysteresis, Springer Verlag.
Minsky, H.P. (1975) John Maynard Keynes, McGraw-Hill Professional.
Palley T. (1996) Post-Keynesian Economics: Debt, Distribution, and the Macro Economy, Palgrave Macmillan.
Robinson, J. (1962) Essays in the Theory of Economic Growth, Palgrave Macmillan.
Romer, D. (2000) Keynesian Macroeconomics without the LM Curve, Journal of Economic Perspectives, 14 (2), 149–69.
Setterfield, M. (1997) Rapid growth and relative decline: Modelling macroeconomic dynamics with hysteresis, New York: St. Martin's Press; London: Macmillan.