This paper presents the current “state of the art” of Post-Keynesian modelling, as well as the most important issues raised by it. We first present a new formal statement of the Keynes' model, highlighting the importance of the “static model of a dynamic process”, and insisting on the...

This paper argues that A. P. Thirlwall's formalization of N. Kaldor's model of agriculture-industry interaction is deficient in its structural specification and its disequilibrium dynamics, and the inferences that Thirlwall draws regarding the role of agriculture in providing a home market for...

It has been argued that aggregate-supply/aggregate-demand (AS/AD) models suffer from an inconsistency because they assume that firms set price and adjust quantity for the AD curve and are profit-maximizing price takers for the AS curve. It is shown that this inconsistency is rife in intermediate...

In his analysis of the affluent society, Galbraith argued that advertising and the sales promotion activities of firms create wants for people, which makes them consume more without making them better off, because their wants were artificially created. Thus, in the affluent society,...

While mainstream growth theory in its neoclassical and new growth theory incarnations has no place for aggregate demand, Keynesian growth models in which aggregate demand determines growth neglect the role of aggregate supply. By assuming that the rate of technological change responds to labour...