Abstract
Abstract The chapter gives an overview of post-Keynesian economics (PKE) and how it offers a macroeconomic foundation for the growth models approach. It first contrasts the methodological foundations of PKE and discusses differences and similarities to mainstream economics and New Keynesian Economics in particular. Second it presents the main features of PKE: demand-led growth (the goods market), post-Keynesian monetary theory (financial markets), and the theory of induced technological change and how it gives rise to path-dependent growth (the supply side). Third it presents the post-Keynesian theory of demand regimes, which covers distributional growth drivers (wage/profit-led growth) as well as finance and fiscal policy effects. Finally, the chapter discusses financialization, and the return of financial cycles and the central role of real estate prices for macroeconomic performance.
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