Chapter 2: The economist who mistook his model for a market
Can we expect Post Keynesian economics to be embraced and taught in mainstream academia? If ever there were a compelling case for Post Keynesian economics in both theory and policy it would be now in light of the anemic recovery in the global recession of 2007–9 and the levels of high unemployment that have persisted long after that recession was to have ended officially. Interventionist policies during that recession were, however, too late and too little, hampered by an antipathy among policy makers toward such policies. At one level removed there was also a corresponding economic mainstream view based on closed system thinking – predicated on the impossibility of economic fluctuations for the economy as a whole – that admitted to no theoretical basis for lending support to these policies. In the place of expansionary fiscal and monetary policies that were put into force we are now seeing a call for a return to economic growth by the traditional policies of fiscal austerity and monetary restraint. The persistently high and prolonged unemployment world-wide is deemed to be structural, not remediable by interventionist monetary or fiscal policies.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.