Post Keynesian Economics Theory

Post – Keynesian Economics, Post Keynesian Theory

In our consideration of macroeconomics, we saw that mainstream macroeco­nomics has followed only one of the many threads found in Keynes's writings. This situation arose partly from the general inability of economists to reach a consensus on what exactly Keynes was saying about the working of the macro-economy. In the 1970s, therefore, a group led initially by Sidney Weintraub and Paul Davidson on this side of the Atlantic and by Joan Robinson and John Eatwell in England joined forces in articulating a criticism of the mainstream neo-Keynes-ian model that was specific enough to allow its authors to view themselves and be viewed as an economic school. Calling themselves post-Keynesians, they held an organizational meeting in 1974, at which they founded their publication, the Journal of Post-Keynesian Economics (JPKE). In the inaugural issue of that journal, the various founders and supporters attempted to state what post-Keynesian economics meant to them. Joan Robinson called it a "method of analysis which takes account of the difference between the future and the past"; J. K. Galbraith said it considers that "an industrial society is in a process of continuous and organic change, that public policy must accommodate to such change, and that by such public action performance can, in fact, be improved." Other writers focused on different issues, but all agreed that neoclassical and neo-Keynesian economics are inappropriate. They came to view themselves, therefore, as the true keepers of the Keynesian faith, calling mainstream macro­economics "bastard Keynesianism."