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This book provides a novel statement of Post Keynesian macroeconomic theory that synthesizes three strains of such theory associated with Yale (Tobin) Keynesianism, Cambridge, UK (Kaldor) Keynesianism, and American (Davidson, Minsky) Post Keynesianism. The book focuses on the significance of privately created inside debt and income distribution for the determination of economic activity. The existence of inside debt means that "nominal" wage reductions cause redistributions of wealth that can reduce aggregate demand, while the effect of income distribution on aggregate demand means that "real" wage reductions also reduce aggregate demand. Consequently, neither nominal wage flexibility nor real wage flexibility can ensure full employment in a monetary economy. The book then explores how money and inside debt are created by the normal workings of the financial system.

Fluctuations in the level of debt service burdens give rise to fluctuations in aggregate demand which can then cause business cycles.

Preface

Introduction

The Emergence of Theoretical and Institutional Coherence in Post Keynesian Economics

The Principle of Effective Demand and the Keynesian Revolution in Equilibrium Economics

Aggregate Demand and Price Adjustment: Pigou Versus Fisher -Expected Aggregate Demand, the Production Period, and the Keynesian Theory of Aggregate Supply

Uncertainty and Expectations

The Endogenous Money Supply: Theory and Evidence -Endogenous Finance

Aggregate Demand and Finance: A Post Keynesian Short Period Macro Model

The Phillips Curve and Demand Pull Inflation

Cost-Push and Conflict Inflation

Debt, Aggregate Demand, and the Business Cycle

Competing Visions: A Post Keynesian Summing Up

Index.

1. Introduction

2. The Emergence of Theoretical and Institutional Coherence in Post Keynesian Economics

3. The Principle of Effective Demand and the Keynesian Revolution in Equilibrium Economics

4. Aggregate Demand and Price Adjustment: Pigou versus Fisher

5. Expected Aggregate Demand, the Production Period, and the Keynesian Theory of Aggregate Supply

6. Uncertainty and Expectations

7. The Endogenous Money Supply: Theory and Evidence

8. Endogenous Finance

9. Aggregate Demand and Finance: A Post Keynesian Short Period Macro Model

10. The Phillips Curve and Demand-Pull Inflation

11. Cost-Push and Conflict Inflation

12. Debt, Aggregate Demand, and the Business Cycle

13. Competing Visions: A Post Keynesian Summing Up.

Supply and demand > Mathematical models.

Supply and demand > Mathematical models.