Macroeconomics after Kalecki and Keynes: Post-Keynesian Foundations

Presenting an in-depth overview of the foundations and developments of post-Keynesian macroeconomics since Kalecki and Keynes, this timely book develops a comprehensive post-Keynesian macroeconomic model with the respective macroeconomic policy mix for achieving non-inflationary full employment. The different versions of the model for closed and open economies are concerned with the key areas of macroeconomics, such as full employment, constant inflation and external balance. Eckhard Hein expertly illustrates how to embed these post-Keynesian macroeconomics and macroeconomic policies into the post-Keynesian research programme more generally, whilst also providing a review of its methods and historical roots. Furthermore, the book links post-Keynesian short-run macroeconomics to long-run distribution and growth theories. Finally, it applies these theoretical approaches to the current research on macroeconomic regimes and regime changes within finance-dominated capitalism and on the macroeconomic challenges of the ecological crisis and of the required socio-ecological transformation. This book will be a crucial read for academics and graduate students interested in post-Keynesian macroeconomics. Providing a thought-provoking alternative to orthodox economic policies, this will also be of interest to policy advisers and politicians.

Table of Contents:
Contents: Preface 1. Introduction 2. Introduction to post-Keynesian economics: methods, history and current state 3. The principle of effective demand, money, credit and finance: Marx, Kalecki, Keynes and the monetary circuit school 4. Post-Keynesian constant price macroeconomic models 5. Post-Keynesian macroeconomic models with conflict inflation 6. A post-Keynesian co-ordinated macroeconomic policy mix 7. From short-run macroeconomics to long-run distribution and growth: a systematic comparison of different paradigms and approaches 8. Macroeconomic demand and growth regimes in finance-dominated capitalism, stagnation tendencies and the macroeconomic policy regimes 9. Facing ecological constraints: implications and challenges for short- and long-run macroeconomic stability and macroeconomic policies 10. Perspectives for post-Keynesian economics Index

About the Author :
Eckhard Hein, Professor of Economics, Institute for International Political Economy, Berlin School of Economics and Law, Germany

Review :
‘Planning for climate change adaptation in vulnerable areas is one of the grand challenges for public policy worldwide. This book explores how climate change adaptation and planning have become pivotal for sustainable thinking and action across all regions. Rich in detail and insights, this thoughtful Handbook features critical case studies from both the Global South and Global North. It is essential reading for scholars, practitioners, and students in planning, urban studies, and related fields.’ ‘Macroeconomics After Kalecki and Keynes has certainly achieved the task that Eckhard Hein had set for himself, that is, to provide “a comprehensive and teachable post-Keynesian macroeconomic model, which includes the main features of post-Keynesian macroeconomics and from which a full macroeconomic policy mix for monetary policy, fiscal policy and wage or incomes policies can be derived” (Hein, p. ix). The book is a remarkable achievement.’ ‘At a time when conventional macroeconomic theories and policies have visibly failed to promote sustainable and equitable economic growth, Eckhard Hein’s brilliant new book provides the most lucid synthesis to date of a comprehensive and progressive alternative: the post-Keynesian approach. Hein builds a complete short-run macro model connecting money, credit, output, inflation and the balance of payments, which he deftly applies to construct an alternative policy paradigm for stabilizing prices while maintaining full employment and external balance. The author then uses this foundation as a springboard to explore advanced issues about long-run growth, income distribution, financial instability, policy-induced stagnation and ecological sustainability. Hein’s clear presentation and persuasive analysis will make this volume an indispensable reference for university students, professional economists and economic policy makers for years to come.’ ‘Macroeconomics After Keynes and Kalecki is a tour de force. It systematically theorizes the short-term outcomes and required policy responses on which macro instruction – and student interest in the field – typically focuses, linking this analysis to longer-term growth dynamics and associated concerns with financialization and ecological sustainability. The book will be of lasting value to all serious students of macroeconomics.’ ‘This book provides a great guide to the vibrancy of post Keynesian macroeconomic analysis in the traditions of Kalecki and Keynes. Particularly welcome is that Eckhard Hein shows how post-Keynesian macroeconomic analyses has developed to incorporate issues of inequality and gender, and contributes to the studies of financialisation and confronting the major ecological issues.’