POST KEYNESIAN THEORY

Post-Keynesian Theory



Introduction

Post-Keynesian economists maintain that Keynes' theory was seriously misrepresented by the two other principle Keynesian schools: neo-Keynesian economics which was orthodox in the 1950s and 60s - and by New Keynesian economics, which together with various strands of neoclassical economics has been dominant in mainstream macroeconomics since the 1980s. Post-Keynesian economics can be seen as an attempt to rebuild economic theory in the light of Keynes's ideas and insights.

However even in the early years in the late 1940s post-Keynesians such as Joan Robinson sought to distance them from Keynes himself, as well as from the then emergent neo-Keynesianism. Some post-Keynesians took an even more progressive view than Keynes with greater emphases on worker friendly policies and re-distribution. Robinson, Paul Davidson and Hyman Minsky were notable for emphasizing the effects on the economy of the practical differences between different types of investments in contrast to Keynes more abstract treatment.

Post-Keynesian Transaction Demand for Money

Monument to the analysis of Keynes's liquidity preference as a factor of direct request or demand for money in terms of self-skip Keynes's ideas with regard to Cambridge professors analyzed the preference for liquidity as Keynes, I think that the breakdown of liquidity but inversely associated with the change in the level of interest rates based on the practice has Keynes attributed the preference for liquidity. (Demand for money in the same psychological factors:

- The demand for money for the purpose of transactions

- The demand for money for the purpose of the reserve - The demand for money for the purpose of speculation

In general, the demand for money is not the purpose of the reserve is independent of the demand for money for the purpose of transactions, but is a complement to it that the result that the demand for money for the purpose of the reserve is intended to ensure that transactions are completed emergency (Sullivan, Arthur, Sheffrin, 2003 Pp 11).

1 - The Demand for Money For The Purpose Of Transactions:

It derives defended transactions and the existence of the function of money as a means of exchange, using money in settlement exchanges and defended the transactions intended desire of economic agents, whether individuals or institutions to retain a certain amount of money in liquid form in order to meet the expenses of ongoing and It is the motive of the most important and most prevalent motivations for the demand for money and respect It drive the need for each of the household sector and the business of money, whether for current transactions or business and therefore the motive attributed to Keynes, this two reasons:

a) Defended Income:

It is well known that individuals receive their income at the end of certain period of time and so we find that there is a period required between him these individuals for their income and keep them happy for the Hajithm means that there is an interval between the receipt of income and expenditure in the form of spending is being During this ...