Hardback
Post-Keynesian Economics for the Future
Sustainability, Policy and Methodology
9781035307500 Edward Elgar Publishing
This timely book provides 15 chapters of cutting edge academic work related to Post-Keynesian economics for the future: This includes stock-flow consistent modelling and analyses of the key challenges associated with the economic policies of sustainability.
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Critical Acclaim
Contributors
Contents
More Information
This timely book provides 15 chapters of cutting-edge academic work related to Post-Keynesian economics for the future. This includes stock-flow consistent modelling and analyses of the key challenges associated with the economic policies of sustainability.
The first part highlights the important challenges of understanding the increasingly disrupted macroeconomic system of global supply chains, fluctuating inflation and unsustainable development in an uncertain and unpredictable economic environment.
These changes call for an updated analytical framework at the global and national levels. For this purpose, the expert contributors firstly present a stock-flow consistent model framework to analyse these new conditions in order to achieve sustainable development in the future. The next sections contain contributions offering a renewed understanding of key macroeconomic phenomena such as Keynes’s fundamental uncertainty and principle of effective demand in an increasingly unstable economic and political system. Following chapters discuss how to re-establish and coordinate a demand-led and sustainable growth path using unconventional fiscal and monetary policy in an unpredictable global environment.
The book contains important updates of macroeconomic theory and method, and presents a number of empirical case-studies. It will be an indispensable read for scholars and students interested in the development within Post-Keynesian theory, policy and methodology. It will also be informative for civil servants working in the Treasury or banking sectors, and policymakers in public and private institutions making decisions for the future in an uncertain economic environment.
The first part highlights the important challenges of understanding the increasingly disrupted macroeconomic system of global supply chains, fluctuating inflation and unsustainable development in an uncertain and unpredictable economic environment.
These changes call for an updated analytical framework at the global and national levels. For this purpose, the expert contributors firstly present a stock-flow consistent model framework to analyse these new conditions in order to achieve sustainable development in the future. The next sections contain contributions offering a renewed understanding of key macroeconomic phenomena such as Keynes’s fundamental uncertainty and principle of effective demand in an increasingly unstable economic and political system. Following chapters discuss how to re-establish and coordinate a demand-led and sustainable growth path using unconventional fiscal and monetary policy in an unpredictable global environment.
The book contains important updates of macroeconomic theory and method, and presents a number of empirical case-studies. It will be an indispensable read for scholars and students interested in the development within Post-Keynesian theory, policy and methodology. It will also be informative for civil servants working in the Treasury or banking sectors, and policymakers in public and private institutions making decisions for the future in an uncertain economic environment.
Critical Acclaim
‘This book is unique in the sense that it reflects the nascent broadening and transformation of Post Keynesian economics into questions about the contemporary consequences of economic activity and economic policy for the economy as a whole. More now than ever do the insights offered by Keynes as he portended the end of laissez-faire and the possibilities for our grandchildren come to the forefront in this collection of chapters by Jespersen, et al. The traditional divide between micro- and macroeconomics becomes blurred in favor of the distributional and environmental consequences of economic activity in the 21st century; as it should.’
– Roy Rotheim, Skidmore College, US
‘Society urgently needs effective macroeconomic theory and policy addressed to environmental sustainability and social justice, given the limitations of the mainstream macroeconomic approach. This welcome book edited by Jespersen, Olesen and Byrialsen addresses this need. It brings together an innovative and important collection of realist Post-Keynesian research which sets out an alternative approach at the levels of methodology, theory and policy.’
– Sheila Dow, University of Stirling, UK
‘This fascinating book by authorities in the field demonstrates the power of Post-Keynesian economic theory to shed light on some very important questions of macroeconomic policy and methodology. The 15 chapters deal convincingly with the Post-Keynesian approach to global warming, to monetary and fiscal policy, and to demand management more generally. Strongly recommended.’
– John King, La Trobe University, Australia
– Roy Rotheim, Skidmore College, US
‘Society urgently needs effective macroeconomic theory and policy addressed to environmental sustainability and social justice, given the limitations of the mainstream macroeconomic approach. This welcome book edited by Jespersen, Olesen and Byrialsen addresses this need. It brings together an innovative and important collection of realist Post-Keynesian research which sets out an alternative approach at the levels of methodology, theory and policy.’
– Sheila Dow, University of Stirling, UK
‘This fascinating book by authorities in the field demonstrates the power of Post-Keynesian economic theory to shed light on some very important questions of macroeconomic policy and methodology. The 15 chapters deal convincingly with the Post-Keynesian approach to global warming, to monetary and fiscal policy, and to demand management more generally. Strongly recommended.’
– John King, La Trobe University, Australia
Contributors
Contributors include: Mikael Randrup Byrialsen, Anna Maria Carabelli, Etienne Espagne, Nguyen Thi Thu Hà, Eckhard Hein, Andrew Jackson, Jesper Jespersen, Thibault Laurentjoye, Mogens Ove Madsen, Jacques Mazier, Finn Olesen, Hamid Raza, Luis Reyes-Ortiz, Louis-Philippe Rochon, Peter Skott, Geoff Tily, Sebastian Valdecantos
Contents
Contents:
Preface and acknowledgements ix
1 Progressive post-Keynesian economics for the future: an
introduction 1
Jesper Jespersen, Finn Olesen and Mikael Randrup Byrialsen
PART I SUSTAINABLE DEVELOPMENT AND SFC
MODELLING
2 Modelling transition-related shocks in the green economy 9
Andrew Jackson
3 Economic impacts of climate change: an empirical
stock-flow consistent model for Viet Nam 25
Etienne Espagne and Thi Thu Ha Nguyen
4 The tensions of the “green transition” for South American
economies 49
Sebastian Valdecantos
5 Conventional and unconventional economic policies in an
econometric SFC model of the French economy 62
Jacques Mazier and Luis Reyes-Ortiz
6 A quarterly empirical model for the Danish economy:
a stock-flow consistent approach 85
Mikael Randrup Byrialsen, Hamid Raza and Sebastian Valdecantos
PART II ECONOMIC THEORY AND POLICY IMPLICATION
7 Demand-led growth and macroeconomic policy regimes
in the Eurozone: implications for post-pandemic economic
policies 108
Eckhard Hein
8 Phillips curves, behavioral economics and post-Keynesian
macroeconomics 124
Peter Skott
9 How not to do monetary policy 140
Louis-Philippe Rochon
10 Inflation, monetary policy and the hierarchy of consumer goods 152
Thibault Laurentjoye
PART III METHODOLOGY AND THEORY
11 On Keynes’s uncertainty: a tragic rational dilemma 170
Anna Maria Carabelli
12 The Principle of Effective Demand – reconsidered:
‘Anything we can actually do, we can afford’ 185
Jesper Jespersen
13 Lucas, modern macroeconomics and the post Keynesians 198
Finn Olesen
14 The General Theory as a macroeconomics of power 210
Geoff Tily
15 Economics for the future: inspiration from the writings of
Karl Polanyi 228
Mogens Ove Madsen
Index 242
Preface and acknowledgements ix
1 Progressive post-Keynesian economics for the future: an
introduction 1
Jesper Jespersen, Finn Olesen and Mikael Randrup Byrialsen
PART I SUSTAINABLE DEVELOPMENT AND SFC
MODELLING
2 Modelling transition-related shocks in the green economy 9
Andrew Jackson
3 Economic impacts of climate change: an empirical
stock-flow consistent model for Viet Nam 25
Etienne Espagne and Thi Thu Ha Nguyen
4 The tensions of the “green transition” for South American
economies 49
Sebastian Valdecantos
5 Conventional and unconventional economic policies in an
econometric SFC model of the French economy 62
Jacques Mazier and Luis Reyes-Ortiz
6 A quarterly empirical model for the Danish economy:
a stock-flow consistent approach 85
Mikael Randrup Byrialsen, Hamid Raza and Sebastian Valdecantos
PART II ECONOMIC THEORY AND POLICY IMPLICATION
7 Demand-led growth and macroeconomic policy regimes
in the Eurozone: implications for post-pandemic economic
policies 108
Eckhard Hein
8 Phillips curves, behavioral economics and post-Keynesian
macroeconomics 124
Peter Skott
9 How not to do monetary policy 140
Louis-Philippe Rochon
10 Inflation, monetary policy and the hierarchy of consumer goods 152
Thibault Laurentjoye
PART III METHODOLOGY AND THEORY
11 On Keynes’s uncertainty: a tragic rational dilemma 170
Anna Maria Carabelli
12 The Principle of Effective Demand – reconsidered:
‘Anything we can actually do, we can afford’ 185
Jesper Jespersen
13 Lucas, modern macroeconomics and the post Keynesians 198
Finn Olesen
14 The General Theory as a macroeconomics of power 210
Geoff Tily
15 Economics for the future: inspiration from the writings of
Karl Polanyi 228
Mogens Ove Madsen
Index 242