Post Keynesian Economics: Solving the Crisis in Economic Theory

Abstract

There appears to be a crisis in economic theory. The tide of events in the last decade has diminished the stature of economists of both neoclassical-Keynesian and monetarist persuasion in the eyes of the public, and the corpus of orthodox neoclassical theory is a shambles. Meanwhile, and even more importantly, there appears to be an economic crisis in the real world which is not unrelated to the crisis in economic theory. For this economic crisis - the second great economic crisis of the twentieth century - is being precipitated by policy advice derived from irrelevant schools of neoclassical economic thought.