Post Keynesian Macroeconomic Theory, Second Edition: A Foundation for Successful Economic Policies for the Twenty-First Century

by Paul Davidson

Overview

In this updated and revised edition of Post Keynesian Macroeconomic Theory, Paul Davidson explains how and why contemporary macroeconomic textbooks fail to incorporate Keynes's liquidity and financial analysis framework to explain the importance of money and financial markets in the real world of experience.

This important text develops Keynes's analytical framework for both closed and open economies and provides policy guidance for the global economy of the twenty-first century. In particular, it deals with problems such as inflation, financial contagion, global unemployment, outsourcing, trade patterns, and developing an international financial system that encourages expansionary growth among all trading partners while avoiding sovereign debt problems.

Using this textbook in macroeconomics courses will provide students with a pragmatic insight that will be both useful and productive.

Contents:
1. The Background for Keynes's Revolution
2. The Essential Difference between the General Theory and the Classical System
3. Taxonomy, Axioms and Expenditures Related to Income: Keynes's D1 Category
4. Investment Spending
5. Government and the Level of Output
6. Delving Further into the Relationship between Money, Liquidity and Uncertainty
7. Liquidity Preference the Basis of Keynes's Revolution
8. The Finance Motive and the Interdependence of the Real and Monetary Sectors
9. Financial Markets, Fast Exits and Great Depressions and Recessions
10. Inflation: Causes and Cures
11. Keynes's Aggregate Supply and Demand Analysis
12. The Demand and Supply of Labour
13. Money in an International Setting
14. Trade Imbalances and International Payments
15. International Liquidity and Exchange Rate Stability
16. Financing the Wealth of Nations 17. Export-led Growth and a Proposal for an International Payments Scheme
18. Epilogue: Truth in Labelling and Economic Textbooks
Index

Product Details

ISBN-13:	9781849809795
Publisher:	Edward Elgar Publishing
Publication date:	07/31/2011
Pages:	360
Product dimensions:	6.00(w) x 9.20(h) x 1.00(d)

About the Author

Paul Davidson, Holly Chair of Excellence Emeritus, University of Tennessee, US and Founding Editor of the Journal of Post Keynesian Economics

Table of Contents

Contents: 1. The Background for Keynes’s Revolution 2. The Essential Difference between the General Theory and the Classical System 3. Taxonomy, Axioms and Expenditures Related to Income: Keynes’s D1 Category 4. Investment Spending 5. Government and the Level of Output 6. Delving Further into the Relationship between Money, Liquidity and Uncertainty 7. Liquidity Preference – the Basis of Keynes’s Revolution 8. The Finance Motive and the Interdependence of the Real and Monetary Sectors 9. Financial Markets, Fast Exits and Great Depressions and Recessions 10. Inflation: Causes and Cures 11. Keynes’s Aggregate Supply and Demand Analysis 12. The Demand and Supply of Labour 13. Money in an International Setting 14. Trade Imbalances and International Payments 15. International Liquidity and Exchange Rate Stability 16. Financing the Wealth of Nations 17. Export-led Growth and a Proposal for an International Payments Scheme 18. Epilogue: Truth in Labelling and Economic Textbooks Index

Editorial Reviews

A work of art and science. Beautifully written and updated, rigorous, faithful and complete, Paul Davidson has given us a lucid and teachable Keynes for our time.’

James K. Galbraith

’Paul Davidson is the keeper of the Keynesian flame. Keynes lives (intellectually), and Davidson is one of the reasons.’

Alan S. Blinder

’Paul Davidson is the leading expert on Keynes and Keynesianism.’

Larry Elliott

Paul Davidson is the leading expert on Keynes and Keynesianism. —Larry Elliott, Guardian

A work of art and science. Beautifully written and updated, rigorous, faithful and complete, Paul Davidson has given us a lucid and teachable Keynes for our time. —James K. Galbraith, The University of Texas at Austin

Paul Davidson is the keeper of the Keynesian flame. Keynes lives (intellectually), and Davidson is one of the reasons. —Alan S. Blinder, Princeton University

From the Publisher

‘I found Davidson’s Post Keynesian Macroeconomic Theory a hard book to put down. Davidson has read and absorbed everything Keynes ever wrote as well as practically everything anyone else has written about Keynes and The General Theory since its publication in 1936, and he has something interesting and provocative to say about all of it. The book is a veritable mother lode of information about Keynes and Keynesian Economics that no serious student of macroeconomics can afford to neglect.’

Robert Clower

‘. . . this book represents a major achievement. . . . Post Keynesian Macroeconomic Theory is the best exposition of an updated Keynes. . .’

J.E. King and Marc Lavoie

‘In Post Keynesian Macroeconomic Theory Paul Davidson takes direct aim at mainstream “Keynesian” economists who tack on, somewhat ad hoc, imperfections in the form of “temporary” rigidities, or stickiness, in the price/wage adjustment mechanism, but otherwise accept the axiomatic foundations of classical theory. Among his targets are such economists as Samuelson, Tobin, Hicks, Blanchard and Mankiw. Davidson believes that although their hearts may be in the right place, these economists have misinterpreted the essence of Keynesian theory, which is not to be found in such temporary inflexibilities. . . . as one of those whose analysis and teaching Davidson is criticising, I found the experience stimulating and provoking.’

C.A.E. Goodhart

‘Post Keynesians will find much with which to agree, which is a testament to both the degree of development of the post Keynesian approach and to Davidson’s ability to bring together disparate research efforts into a general , Post Keynesian, theory.’

L. Randall Wray

‘A refreshing antidote to too much of what has been passing for macroeconomics’

Robert Eisner

‘. . . carefully crafted and closely reasoned book. . . ’

Wallace C. Peterson

‘Post Keynesian Macroeconomic Theory is a good introduction to post Keynesian thinking, suitable for use in intermediate level courses. . . . Davidson well demonstrates Keynes’s continued relevance to policy economics.’

Bernard Malamud