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Post-Keynesian dynamic stochastic general equilibrium theory

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Article

Farmer, Roger E.A.

European Journal of Economics and Economic Policies

2017

14

2

173-185

economic theory ; economic model ; macroeconomics

Economics

http://dx.doi.org/10.4337/ejeep.2017.02.02

English

Bibliogr.

"This paper explains the connection between ideas developed in my recent books and papers and those of economists who self-identify as post-Keynesians. My own work is both neoclassical and ‘old Keynesian.' Much of my published work assumes that people have rational expectations and that ‘animal spirits' should be modeled as a new fundamental. I adopt a general equilibrium framework to model the macroeconomy. But although I write from a neoclassical tradition the themes I explore in my published writing have much in common with heterodox economics. This paper explains the common elements between these seemingly disparate traditions. I make the case for unity between post-Keynesian and general equilibrium theory under the banner of post-Keynesian dynamic stochastic general equilibrium theory."

Digital



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