RE: Post-Keynsians Tenants <holtri@vax1.elon.edu>

["Alan G. Isaac" <AISAAC@xxxxxxxxxxxx>]

To this list I would add

7. Aggregate demand is a crucial determinant of output and unemployment,
certainly in the short-run and (depending on whom you ask) possibly
in the long run. As a result, most PKs hold demand management can
be useful macro policy. (Possibly this was intended to be an
implication of 3 below, but the general phrasing left me uncertain.)

8. The money supply is endogenous. (Exactly what this means, why it
is the case, and how it affects policy remain controversial.)



On Tue, 11 Jan 1994 08:12:34 -0700 RICHARD P.F. HOLT said:
>The place I know for finding the tenets of post keynesian economics is
>from the first chapter of Paul Davidson's book, _International_Money_
>And_The _Real_World_. He lists the six concepts that post keynesian
>economics are based on:
>
>1. The notion  that the economic system is a process moving irreversibly
>through calender time (i.e. the economy is a process in history).
>
>2. post keynesians emphasize the difference between uncertainty and
>predictable risk.
>
>3. In a post keynesian world economic and political institutions are
>influential and in determining output, employment and the price level.
>
>4. The distribution of income and power is a basic aspect of post keynesian
>thought.
>
>5. post keynesians emphasize the non-malleability of real capital and the
>difference between  financial and real capital and the markets for each.
>
>6. post keynesians analysis emphasizes income effects as being more
>dominant than substitution effects in creating, and resolving, real world
>economic problems.
>
>>From pp. 9-18
>-Ric Holt