With its emphasis on real-world assumptions above theoretical neatness, and the centrality of money within its theoretical framework, post-Keynesian economics offers important insights into understanding how modern day economies work, where financial services and flows dominate the performance of economies. In this advanced introduction, Matteo Iannizzutto showcases post-Keynesianism's contributions to such central issues as the fundamental uncertainty in economic decisions, the theory of liquidity preference, effective demand and nominal contracts. In each case the author presents the strength of post-Keynesian ideas alongside those of mainstream economics and shows their explanatory power in the light of the financial crisis. The author also explores the implications for policy prescriptions arising out of his post-Keynesian analysis, such as supporting the level of employment and regulation and segmentation of financial markets.
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.