This paper presents the Loans Standard (LS) model as an example of a pure credit monetary system. The LS model clariies some en-dogenous credit money issues raised by Moore, Wray, Arestis, Good-hart and others in the Journal of Post Keynesian Economics. The LS model encapsulates the credit money characteristics which have been identiied in the present monetary system, but removes its extraneous...

The aim of this paper is two-fold: it first evaluates some of the psychological insights offered by Keynes in his economic theories, and secondly it weighs up these insights in the light of recent research in behavioral and experimental economics. We found that many of the psychological ideas set forth by Keynes in his economic works, especially in The General Theory, have a defensible behavior...

I embed the pricing model proposed by Dixon and Kara (2011a, b) (i.e. a Generalized Taylor Economy (GTE)) into a state of the art instance of New Keynesian economics (e.g. Christiano, Eichenbaum and Evans (2005) and Smets and Wouters (2007)). The GTE is built to account for one of the most important features of the data: heterogeneity in price spells. I estimate the resulting model for the US u...

Since the global financial crisis there has been growing interest in Post-Keynesian macroeconomic theory by political economists. In particular, recent Growth Models approach Comparative Political Economy (CPE) draws heavily on Kaleckian macroeconomics of demand regimes. This paper, firstly, traces disintegration nineteenth-century economy and highlights that many streams within heterodox econo...

This paper describes research that integrates Keynesian and Walrasian economics in a new way. The author develops a model in which high unemployment can persist and any unemployment rate can occur as an equilibrium. Equilibrium is selected by the self-fulfilling beliefs of asset market participants. Using this new framework, the author argues that fiscal policy is not the best solution to the p...

This paper examines the theory of the Phillips curve, focusing on the distinction between “formation” of inflation expectations and “incorporation” of inflation expectations. Phillips curve theory has largely focused on the former. Explaining the Phillips curve by reference to expectation formation keeps Phillips curve theory in the policy orbit of natural rate thinking where there is no welfar...

This paper considers some methodological aspects of Joan Robinson’s contribution to post-Keynesian growth theory. Joan Robinson’s criticisms of equilibrium analysis, of the conflation of logical and historical time and of the uses (and misuses) of mathematical formalisation are scathing. But while many of her points are well taken, parts of her argument appear questionable. As a result, her met...

While many heterodox economic scholars hope for a paradigmatic change in economics due to the great financial crisis, this paper emphasizes that path-dependent elements and institutional factors within the economic community constitute a substantial barrier for paradigmatic change. Focusing on the citation behavior of economists in heterodox journals in general and in Post-Keynesian journals in...

A Farmer-type Keynesian model is constructed to explore and exposit Keynesian ideas. The modeling innovation is to integrate Farmer’s approach with monetary exchange and to derive optimal monetary and fiscal policies. Two approaches are taken to optimal policy an approach in the spirit of New Keynesian sticky-wage-and-price models, and an a "sophisticated policy" approach. Optimal policies typi...