JSDonald
How does Post-Keynesian economics differ from New Keynesian economics?
Post-Keynesian economics
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replied to: JSDonald
crazyman2
Replied to: How does Post-Keynesian economics differ from New Keynesian economics?
Post-Keynesian economics works on the principle of effective demand, which means that demand has market significance in the long as well as short run, and that some level of unemployment is normal in a competitive market.
replied to: crazyman2
jstack
Replied to: Post-Keynesian economics works on the principle of effective demand, which means...
Post-Keynesian economists pointed out that money supply responds to the demand for bank credit. Banks can either choose the quantity of money or the interest rate, but not both. This has become a central factor in the creation of monetary policy that uses the interest rate as an instrument of finance.