Macroeconomics Without the Lm Curve : An Alternative View

This paper develops a lsquo;fully articulated' post-Keynesian alternative to the lsquo;New Consensus' macroeconomic model, based on explicitly post-Keynesian hypotheses about the inflation process, the income-generating process and the appropriate conduct of monetary policy. The paper demonstrates how the equilibrium configuration of this model can be manipulated by non-monetary policy interventions, including fiscal policy and incomes policy. One (perhaps surprising) result that emerges from the analysis is that in the context of the proper policy environment, inflation targeting can have a positive impact on real economic performance