A Gendered Post Keynesian–Institutional Analysis
Chapter 2: The Place of Households in the Post Keynesian Theory of Monetary Production
ELEMENTS OF THE POST KEYNESIAN THEORY OF MONETARY PRODUCTION One of the main juxtapositions that divide neoclassical from heterodox economic theories is exchange versus production (Lavoie 1992; Dow 2001, 19). John Maynard Keynes (1933 ; 1936 ) developed the concept of entrepreneurial (monetary production) economy as an alternative to the real-wage framework in which money does not enter the production process in any significant manner. The notion of a monetary production economy serves as the core of Post Keynesian economics (De Carvalho 1992, 11). Later, the analysis of a monetary production economy will be extended to an analysis of pecuniary culture by introducing the analytical category of gender. Households will serve as a focal point in discussing monetary production and gender as processes within a pecuniary culture. The following characteristics of a monetary production economy pertain to households: ● ● ● ● Households engage in pecuniary valuation in order to secure a livelihood. Money serves as a unit of account that households must obtain. Money is a store of value, and can preclude households to obtain livelihood. As a consequence, there is no market mechanism that eliminates unemployment. Prices and the wage structure are administered by business enterprises. 12 Households in the Post Keynesian theory of monetary production ● 13 Business enterprises launch product lines in order to achieve various business goals which may or may not correspond to the households’ need to secure livelihood. As a consequence of all these, scarcity is not a natural phenomenon (even though there are exhaustive natural resources), instead,...
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