In this presentation, given at the 26th Forum for Macroeconomics and Macroeconomic Policies (FMM) conference, Jo Michell discusses some key implications of climate change regarding the standard policy prescriptions of Post-Keynesian economics, particularly relating to the possible necessity of consumption constraints and the presence of recurrent inflation. Bearing this in mind, Michell advocates for an “investment-led strategy” for the green transition. Michell also adopts a “fiscal structuralist” stance, criticising the standard Modern Monetary Theory framework for omitting the crucial concept of monetary hierarchy.
Presentation slides, along with videos and slides for other presentations, can be found at: https://www.boeckler.de/de/dokumentationen-2720-26th-fmm-conference-post-keynesian-economics-and-global-challenges-40775.htm
The presentation raises a fascinating question, which is if Keynesian economics must change their standard policy prescriptions in the face of the "end of the age of abundance" in times of climate change and related supply side constraints. Although the presentation is hard to follow to due a mix-up with the slide deck, it provides a helpful overview of ongoing debates among Keynesian Economists as well as an interesting positioning therein that takes ecological scarcity seriously.