Keynes's Principle of Effective Demand is widely recognized not only as a major theoretical innovation but also as one of the core concepts uniting various post-Keynesian strands. However, Keynes's own treatment of the Principle of Effective Demand - known as the Z/D model and identified by...

This research examines impacts of austerity on the political instability in the European Union, defined as elevated levels of electoral volatility and ideological polarization. By analyzing macroeconomic theories that elucidate the effects of austerity on citizens' wealth and the national...

This comment critically examines the recent claim by Alcobia and Barradas that the European Union follows a wage-led growth regime, warranting pro-labour policy intervention. While their findings support a clear policy stance, closer inspection reveals significant methodological and empirical...

During the neoliberal era, fiscal policy was side-lined: from a political economy perspective, it was seen as biased toward deficit and debt accumulation, while from a macroeconomic perspective, its potential role as a business cycle stabiliser was shifted to monetary policy, in line with the...

This paper aims to analyze the main reasons to the tendency toward stagnation of the Brazilian economy and to discuss a strategy of sustained development to overcome such tendency from a Keynesian-Structuralist approach, more specifically adopting a Newdevelopmentalism green agenda. A sustained...

This article shows that there is a methodological problem in the traditional IS-LM model. If production cannot be sufficiently adjusted downwards, there is no uniform interest rate that simultaneously clears the money and goods markets. An extension of the credit market in the tradition of the...

This paper reconstructs Joseph Schumpeter's major works to propose a coherent new departure point for analyzing economic and social change. I argue that Capitalism, Socialism and Democracy (1942) (CSD) marks a radical departure from Schumpeter's earlier attempts in The Theory of Economic...

Paul Davidson was a critical figure in the preservation of John Maynard Keynes's ideas, sticking with them when they were out of fashion. He was also key to the survival of the Post Keynesian school. Davidson endorsed Keynes's liquidity preference theory of interest, and he emphasized...

This paper develops a stock-flow consistent Post-Keynesian model in the Kalecki-Steindl tradition with endogenous wealth accumulation and distribution, which captures the key aspects of the Cambridge debate on (anti-)dual and Pasinetti equilibria. We find that a stable interior solution - that...

The article examines historical aspects, general economic logic, and theoretical discussions on the policy of stimulating the economy through increased government appropriations for defense items. It provides a brief overview of empirical studies on economic effects of defense spending in Russia...

This paper critically reviews both mainstream and Keynesian empirical studies of interest rate dynamics. It assesses the key findings of a selected number of these studies, surveying the debates between the mainstream and the Keynesian schools. It also explores the debates on interest rate...

The outbreak of the Great War facilitated a shift in the dominant view of human nature within the Bloomsbury-Cambridge intelligentsia, steering it away from an optimistic view toward a pessimistic one. The conceptualization of human reason and rationality, however, remained intact by the war....

Hajo Riese (FU Berlin) was a pioneer of the "Berlin School of Monetary Keynesianism", particularly in the 1980s and 1990s. His research work was based on the roots of monetary theory in the work of J. M. Keynes, with a particular focus on the theory of capital and interest rates. While in Keynes...

Comparative political economy scholarship struggles to categorize Italy's model of capitalism between a mixed-market economy and a hybrid, stagnant economic system. To enhance our understanding of the Italian political economy, this paper employs the analytical framework of growth regimes to...

The article discusses the ongoing debate about a potential paradigm shift in eco-nomics. Institutions like the Institute for New Economic Thinking, the New Economics Foundation, and the Forum New Economy have been established to foster new approaches to understanding and transforming economies....

This paper examines heterodox theories of the determinants of the value of money. Orthodox approaches that tie money's value to relative scarcity of money or to the price level are rejected as inconsistent with the monetary theory of production embraced by heterodox traditions linked to Marx,...

I argue that the outbreak of the Great War facilitated a shift in the dominant view of human nature within the Cambridge-Bloomsbury intelligentsia, steering it away from an optimistic view toward a pessimistic one. The conceptualization of human reason and rationality within this group, however,...

This paper develops a stock-flow consistent Post-Keynesian model in the Kalecki-Steindl tradition with endogenous wealth accumulation and distribution, which captures the key aspects of the Cambridge debate on (anti-)dual and Pasinetti equilibria. We find that a stable interior solution - that...

This article integrates monetary policy into a very simple dynamic supermultiplier model with an accommodating supply side. Results show that monetary policy guided by a conventional Taylor rule may stabilize an economy around the steady-state path of demand-led growth following temporary demand...

The principle of effective demand, and the claim of its validity for a monetary production economy in the short and in the long run, is the core of heterodox macroeconomics, as currently found in all the different strands of post-Keynesian economics (Fundamentalists, Kaleckians, Sraffians,...

Controversy is vital in the pursuit of knowledge. Constructive dispute can drive intellectual growth and deepen understanding within a field. However, mutual respect, thorough engagement, and intellectual humility are necessary for productive exchanges. In this vein, I clarify in my response to...

The push to pluralise the economic discipline involves making informed decisions about which paradigm to adopt, requiring a deep understanding of each paradigm's characteristics and affiliations. Once paradigmatic choices are made, different theories can either collaborate effectively or require...

Marx und Keynes sowie die Varianten der monetären Werttheorie und des Monetärkeynesianismus lassen sich nur sinnvoll in ein Verhältnis setzen, wenn die differierenden Argumentationsebenen berücksichtigt werden. Während Marx von sozialen Formen ausgeht, welche Geld erst begründen, geht...

This paper first presents a dynamic model that features both real and monetary aspects of international trade and is capable of dealing with both full employment and secular unemployment. The model is then utilized to examine the effect of a tariff on the terms of trade, the trade pattern, real...

Purpose This paper, based on the 2022 Master Class delivered at the 50th National Economic Meeting organized by ANPEC, discusses how post-Keynesian macroeconomics and New Developmentalism complement each other to understand middle-income economies' development in financial globalization. It...

The economic tradition of ordoliberalism , understood as the theoretical and policy ideas of the Freiburg School, emerged in 1930s and 1940s Germany. In the years thereafter, it was quickly superseded by Keynesianism and other theories imported from the English-speaking world. The crisis in...

Für das im Jahr 2025 stattfindende 100-jährige Jubiläum des DIW Berlin und dessen Geschichte ist die hier vorgelegte Dokumentation eines 1999 geführten Gesprächs zwischen den ehemaligen DIW-Abteilungsleitern Fritz Franzmeyer und Reinhard Pohl einerseits und Gert G. Wagner andererseits von...

This paper estimates a demand-led model of macroeconomic growth and fluctuations in which the growth rate of the economy’s supply side converges to the growth rate of demand. Convergence happens because labor supply and productivity growth respond to the degree of slack in the economy. Faster...

This brief note raises the complex matter of the concept of rent-seeking, particularly as it connects with the author's prior discussion of Keynesian Fordism and Neoliberal Financialization. In doing so the author argues that where Keynesian Fordism, in line with its leveraging of the...

This paper argues that the distinction between Keynesianism and Monetarism is not a useful frame for the debate on monetary policy during the past decade. The main driver of this debate is the secular decline in the real interest rates over the past four decades. It is more useful to distinguish...

Demand and Growth Regimes (DGR) and Macroeconomic Policy Regimes (MPR) frameworks have taken prominence within the post-Keynesian literature. However, the majority of studies based on these conceptual frameworks have focused on developed economies. The main contribution of this paper is to...