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Post‐Keynesian Economics: A User's Guide
Author(s) -
Hart Neil,
Kriesler Peter
Publication year - 2015
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12122
Subject(s) - economics , post keynesian economics , mainstream economics , keynesian economics , full employment , mainstream , rule of thumb , economic interventionism , macroeconomics , government (linguistics) , new keynesian economics , intervention (counseling) , skepticism , business cycle , monetary policy , neoclassical economics , politics , applied economics , unemployment , political science , psychology , linguistics , philosophy , epistemology , algorithm , psychiatry , computer science , law
This article provides a brief introduction to post‐Keynesian economics. Post‐Keynesians are sceptical of the usefulness of the equilibrium method and favour an approach based on path‐determined models with, due to the influence of uncertainty on economic decisions, an important role assigned to money, institutions and rules of thumb. As there are no forces within capitalist economies which can guarantee full employment, government intervention is important. While monetary policy is seen as a rather blunt instrument, fiscal policy is perceived to be much more potent than it is in the mainstream. However, there are inherent limits to the achievement of sustained full employment in capitalist economies.