Post Keynesian economicsPost Keynesian economics is a school of thought which is based on the ideas of John Maynard Keynes. It differs from the interpretation of Keynes' ideas offered by mainstream Keynesian economics, emphasising in particular:
- The importance of uncertainty, historical time, or non-ergodicity (as opposed to risk, logical time, and ergodic processes).
- The idea that money matters in all runs.
- A rejection of neoclassical general equilibrium models.
Post Keynesians believe, along with others, that what many call Keynesianism is, in fact, a counterrevolution against the economics of Keynes. Keynesianism, as developed by many American economists, teaches that involuntary unemployment is a temporary or medium run phenomenon. Government pump-priming may be desirable, but if wages and prices were perfectly flexible, mainstream Keynesian economists believe, the labor market would eventually clear.
There are divisions within Post Keynesian economics, e.g. between American Post Keynesians such as Paul Davidson and the Cambridge (England) - Italian branch.
Post Keynesian economics emphasizes macroeconomics. Many Post Keynes look to American Institutionalists for microeconomics. Institutionalists include such economists as Thorstein Veblen, John R. Commons, Wesley Clair Mitchell, John Maurice Clark, Clarence Ayres, Gunnar Myrdal (not-an-American), and John Kenneth Galbraith.