"Accounts of Keynes’ contributions to economics have virtually vanished from mainstream textbooks, strangely for one generally regarded as the greatest economist of the twentieth century and whose ideas have been taken in new directions by Post-Keynesian economists. This book will reward readers with a clear exposition of the main currents of Keynes’ and Post-Keynesian thought and will enable them to make an informed assessment of their relevance in today’s world." – Victoria Chick, University College London
With its emphasis on the centrality of fundamental uncertainty and the resulting desire for liquid assets, post-Keynesian economics offers important insights into understanding how modern economies work, placing money and banking at their heart, exactly as any realistic account would do.
In this advanced introduction, Matteo Iannizzotto revisits the contributions of post-Keynesian ideas to such central issues as the inescapable condition of uncertainty in economic decisions, the theory of liquidity preference, effective demand, endogenous money supply, and the financial instability hypothesis. In each case, the author traces the foundations in the work of Keynes and presents the strength of post-Keynesian ideas of later authors like Kaldor, Minsky and Weintraub in comparison with the corresponding models of mainstream economics and shows their greater explanatory power particularly in the light of the recent global financial crisis.
1. Introduction and history 2. Flavours of uncertainty 3. Conventions and the thirst for liquidity 4. Effective employment 5. Time and money 6. Banks 7. Destabilizing stability 8. Where to now?
Matteo Iannizzotto is Associate Professor in Macroeconomics at Durham University.