Heterodox Macroeconomics: Crotty's Integration of Keynes and Marx

Abstract

While heterodox macroeconomic theories agree on a set of general principles, there is far less agreement on specific behavioral relations. With the goal of developing a more potent heterodox framework through the integration of Keynesian, Marxian, and institutionalist perspectives, I consider the seminal work of James Crotty. Crotty has developed the building blocks of an integrated heterodox macro theory that revolve around the nexus of the concepts of fundamental uncertainty, financial fragility, impatient finance, irreversible investment, adversarial class relations, the Marxian concept of competition, Marxian crisis theory, and effective demand. This integration considers numerous dichotomies/regime shifts that are useful for understanding the path of capitalist development.