Abstract

Post-Keynesian Economics

Post-Keynesianism attempts to substantiate its own particular approach to economics. The object is to achieve this intention by further development of Keynesian macroeconomics and the elaboration of a “Keynesian microeconomics”. | The central point of departure is accentuation of the dominant position of the oligopolistic sector. This implies autonomy of investments and hence exogenous determination of the accumulation and profit rate. Endogenous variables are the degree of capacity utilization and the payroll-costs ratio. The mercantile power of the oligopoly makes it possible, via an autonomous price policy, to set up an internal fund serving to finance investments. Here the main emphasis is on mark-up pricing. On account of the long-range orientation of the oligopoly, expectations are of special significance. They govern the development of normal conceptions as to capacity utilization, price etc. This sort of normal conception forms the basis for analysis of business trends. Post-Keynesianism has developed no completely elaborated theory and policy as yet. It still considers itself to be a research programme. Consequently, for certain spheres, e.g. monetary theory, up to now there are only rudimentary drafts, so that for economic policy, too, no definitively formulated conceptions can be presented as yet. On the whole, post-Keynesianism is a promising approach to the analysis of real economic processes.