This book offers an accessible introduction to post-Keynesian economics, showing that there is an alternative to neoclassical economics and its free-market economic policies. Post-Keynesian economics is founded on realistic assumptions, such as interest targeting by central banks or constant average variable costs in manufacturing and services.
This book gives an introduction to post-Keynesian economics in a simple and clear way. It showcases how post-Keynesianism differs from new-Keynesianism and mainstream economics, and rejects several notions and assumptions of mainstream macroeconomic theory. Lavoie aims to offer a true alternative to the dominant school of thought (neoclassical), which he believes post-Keynesianism does, because it is more closely linked to the real economy. He shows how, unlike in neoclassical theory, rise in demand does not necessarily increase prices, and a rise in the minimum wage does not lead to an increase in unemployment.
Comment from our editors:
This book is a great supplement to standard macroeconomic undergraduate courses, as well as more advanced ones. Post-Keynesian economics offers an alternative to mainstream economic theory and the notion of a free market. Post-Keynesianism can be classified as a heterodox school of thought, which you can read more about here: https://www.exploring-economics.org/en/orientation/post-keynesian-economics/.
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