Post-Keynesian Economic Theory

Post-Keynesian Economic Theory builds on the ideas of John Maynard Keynes, emphasizing the importance of aggregate demand in driving economic growth and employment. It argues that economies are inherently unstable due to uncertainty, leading to fluctuations in investment and consumption. This theory challenges traditional views by prioritizing real-world factors like money, power dynamics, and institutional settings over abstract models. It advocates for active government intervention to stabilize the economy, suggesting that monetary and fiscal policies are essential tools for managing demand and addressing issues such as unemployment and inflation.