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An analytical framework for the Post-Keynesian macroeconomic paradigm

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  • Herr, Hansjörg

Abstract

The original Keynesian paradigm differs from the Neoclassical Synthesis and even more so from the New-Keynesian approach. In this paper, a modern framework for the original Keynesian paradigm is presented. It will highlight the key elements of the paradigm. A model is developed to determine output, unemployment and price level changes. Finally, the paper draws policy conclusions based on Keynesian original thinking. The purpose of the paper is not only to give a framework of Keynesian thought, but also to stimulate debate and discussion within the Post-Keynesian camp. The paper is written in a way which allows nonexperts in the field to follow the argumentation. However, not all ramifications of the Post- Keynesian paradigm can be covered.

Suggested Citation

  • Herr, Hansjörg, 2013. "An analytical framework for the Post-Keynesian macroeconomic paradigm," IPE Working Papers 23/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:232013
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    More about this item

    Keywords

    economic paradigm; Keynesian economics; output and employment; inflation; economic policy;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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