Introduction to post-Keynesian economics: methods, history and current state

Abstract

In Chapter 2, the methods and the history of post-Keynesian economics are reviewed. First, heterodox economics in general, including post-Keynesian economics, is distinguished from orthodox economics from a methodological perspective. Then the different strands in post-Keynesian economics are presented: The fundamentalist Keynesians, the Kaleckians, the Kaldorians, the Sraffians and the institutionalists. Their differences and, in particular, their commonalities, are pointed out. It is argued that there are five major claims or features common to these strands, which make post-Keynesian economics a distinct school of thought in heterodox economics. Then, the stages of development of post-Keynesian economics since the foundation of this school with the works of Michal Kalecki and John Maynard Keynes are presented. Finally, the current state of post-Keynesian economics as an alternative to mainstream orthodox economics is briefly assessed.