New Keynesian Economics Post Keynesian Alternatives (routledge Frontiers Of Political Economy, 9)

NEW KEYNESIAN ECONOMICS/POST KEYNESIAN ALTERNATIVES This collection of original essays by the world’s most prominent Post Keynesian Economists offers a critique of what has come to be known as New Keynesian Economics and provides alternative conceptions to each of its principal areas: • • • • • price and quantity adjustments the labour market the capital market coordination failures public policy The volume is a response to Mankiw and Romer’s New Keynesian Economics, and to the claim that New Keynesian Economics has provided a unique micro-economic foundation for so-called Keynesian features and Keynesian results. John Maynard Keynes wrote that any theory based on such foundations was theoretically flawed, did not represent the world in which we lived and would entail disastrous consequences if used as the basis of public policy. Adhering to this position of Keynes, Post Keynesians reject any neoclassical foundation for Keynesian economics. Instead, they provide a richer theoretical foundation—which does not rely on the classical dichotomy embraced by all neo-classical economists—consistent with Keynes’ monetary theory of production. Roy J.Rotheim is Professor of Economics at Skidmore College, Saratoga Springs, New York. He was previously Executive Editor of Challenge—The Magazine of Economic Affairs and Associate Editor of the Eastern Economic Journal. His principal publications have been in the areas of Keynesian uncertainty, economic theory, and the history of economic thought. ROUTLEDGE FRONTIERS OF POLITICAL ECONOMY 1 EquilibriumVersus Understanding:Towards the Rehumanization of Economics within Social Theory—Mark Addleson 2 Evolution, Order and Complexity—Edited by Elias L.Khalil and Kenneth E. Boulding 3 Interactions in Political Economy: Malvern After Ten Years—Edited by Steven Prassman 4 The End of Economics—Michael Perelman 5 Probability in Economics—Omar F.Hamouda and Robin Rowley 6 Capital Controversy, Post Keynesian Economics and the History of Economic Theory: Essays in Honour of Geoff Harcourt,Volume One—Edited by Philip Arestis, Gabriel Palma and Malcolm Sawyer 7 Markets, Unemployment and Economics Policy: Essays in Honour of Geoff Harcourt,Volume Two—Edited by Philip Arestis, Gabriel Palma and Malcolm Sawyer 8 Social Economy: The Logic of Capitalist Development—Clark Everling 9 New Keynesian Economics/Post Keynesian Alternatives—Edited by Roy J. Rotheim 10 The Representative Agent in Macroeconomics—James E.Hartley 11 Borderlands of Economics: Essays in Honour of Daniel R.Fusfeld—Edited by Nahid Aslanbeigui and Young Back Choi 12 Value Distribution and Capital—Edited by Gary Mongiovi and Fabio Petri 13 The Economics of Science—James R.Wible 14 Competitiveness, Localised Learning and Regional Development: Specialization and Prosperity in Small Open Economies—Peter Maskell, Heikki Eskelinen, Ingjaldur Hannibalsson, Anders Malmberg and Eirik Vatne 15 Labour Market Theory: A Critical Assessment—Ben J.Fine 16 Women and European Employment—Jill Rubery, Mark Smith, Damian Grimshaw 17 Explorations in Economic Methodology: From Lakatos to Empirical Philosophy of Science—Roger Backhouse 18 Wanting and Choosing: Essays on Subjectivity in Political Economy—David P. Levine NEW KEYNESIAN ECONOMICS/POST KEYNESIAN ALTERNATIVES Edited by Roy J.Rotheim London and New York First published 1998 by Routledge 11 New Fetter Lane, London EC4P 4EE This edition published in the Taylor & Francis e-Library, 2003. S