This entertaining book takes up the theme that psychology matters for economics. Akerlof and Shiller introduce this idea in the guise of 'animal spirits' that they define to mean five things: (1) confidence (beliefs about what will happen can independently influence outcomes); (2) fairness (wage setting depends on concerns for what others receive); (3) antisocial behavior (some bankers are crim...

This article outlines principles of a modernised macroeconomic framework, drawing on John Maynard Keynes. It explores the historical context in which Keynes? economic theory arose, and history its application subsequent replacement by neoclassical economics. The argues that any updated Keynesian programme must address three new problems: globalization, wealth inequality climate change. sketches...

Post-Keynesian institutionalism (PKI)—a branch of the (original) institutionalist school that builds on common ground with post-Keynesianism—constitutes a robust tradition secure foundations and broad methodological, analytical, policy contours. Since its emergence in 1980s, has consistently been ahead economic mainstream shedding light real-world problems. Drawing work various heterodox econom...

The aim of this paper is to use agent-based computational economics to explore the economic thinking of Keynes. Taking his starting point at the macroeconomic level, Keynes argued that economic systems are characterized by fundamental uncertainty an uncertainty that makes rule-based behaviour and reliance on monetary magnitudes more optimal to the economic agent than profitand utility optimizat...

This paper deals with the concepts of science and social control to be found within interwar institutional economics. It is argued that these were central parts of the institutionalist approach to economics as the key participants in the movement defined it. For institutionalists, science was defined as empirical, investigational, experimental, and instrumental. Social control was defined in te...

Prebisch believed that understanding the evolution of capitalist economies over time and in different contexts required a general cycle approach, which he labeled ‘dynamic economics’, encompassing all the different areas of economic activity. His dynamic economics developed between 1945 and 1949 stemmed from a critique of both Neoclassical and Keynesian theories which Prebisch viewed as static ...

Prebisch believed that understanding the evolution of capitalist economies over time and in different contexts required a general cycle approach, which he labeled ‘dynamic economics’, encompassing all the different areas of economic activity. His dynamic economics stemmed from a critique of both neoclassical and Keynesian theories, which Prebisch viewed as static representations of capitalism. ...

This paper is about the explanation of the Great Depression given in Keynes’ General Theory. There are two key ideas in this book that set it apart from pre-Keynesian economics: The first is that there is something distinctive about the labor market that makes the marginal disutility of labor different in general from the real wage. The second is that aggregate economic activity is determined b...

A. Topics and Tools ............................................................................ 1 B. Walrasian vs. Keynesian Explanations of Business Cycles ........................ 3 Why do we have multiple theories of business cycles? ....................................................... 3 Classification of business-cycle models ................................................................

The chapter provides a concise discussion of the role of mathematics in economic theory. After a brief overview of the main applications of the mathematical methods to economic problems, the chapter focuses on general equilibrium theory in its atemporal and intertemporal versions and discusses the concepts of equilibrium and dynamics in natural sciences and economics. In this context, business ...