Post-Keynesian Economics

Edited by Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy and Founding Editor Emeritus, Review of Keynesian Economics and Sergio Rossi, Full Professor of Economics, University of Fribourg, Switzerland

• Volume I: Issues in Methodology - Louis-Philippe Rochon and Sergio Rossi Contents:Introduction Louis-Philippe Rochon and Sergio RossiPART IWHAT IS POST-KEYNESIAN ECONOMICS?1. Sheila C. Dow (1988), ‘Post Keynesian Economics: Conceptual Underpinnings’, British Review of Economic Issues, 10 (3), Autumn, 1–182. O. F. Hamouda and G. C. Harcourt (1988), ‘Post Keynesianism: From Criticism to Coherence?’, Bulletin of Economic Research, 40 (1), January, 1–333. Sheila C. Dow (1990), ‘Post-Keynesianism as Political Economy: A Methodological Discussion’, Review of Political Economy, 2 (3), 345–584. Victoria Chick (1995), ‘Is There a Case for Post Keynesian Economics?’, Scottish Journal of Political Economy, 42 (1), February, 20–365. Philip Arestis (1996), ‘Post-Keynesian Economics: Towards Coherence’, Cambridge Journal of Economics, 20 (1), January, 111–35 6. Sheila C. Dow (2000), ‘Prospects for the Progress of Heterodox Economics’, Journal of the History of Economic Thought, 22 (2), 157–707. Victoria Chick (2004), 'On Open Systems', Brazilian Journal of Political Economy, 24 (1), January–March, 3–16 8. Tony Lawson (2006), ‘The Nature of Heterodox Economics’, Cambridge Journal of Economics, 30 (4), July, 483–5059. John B. Davis (2006), ‘The Nature of Heterodox Economics’, Post-Autistic Economics Review: Symposium on Reorienting Economics, 40 (1), December, 23–30PART IIPOST-KEYNESIAN ECONOMICS AND OTHER HETERODOX TRADITIONS10. Edward Nell (1990), ‘Keynes and Sraffa: Marshallian or Classical Foundations?’, in Krishna Bharadwaj and Bertram Schefold (eds), Essays on Piero Sraffa: Critical Perspectives on the Revival of Classical Theory, Part II, Chapter 10, London, UK: Unwin Hyman, 352–5711. Marc Lavoie (1992), ‘Towards a New Research Programme for Post-Keynesianism and Neo-Ricardianism’, Review of Political Economy, 4 (1), 37–7812. Tony Lawson (1994), ‘The Nature of Post Keynesianism and its Links to Other Traditions: A Realist Perspective’, Journal of Post Keynesian Economics, 16 (4), Summer, 503–3813. Marc Lavoie (2003), ‘The Tight Links between Post-Keynesian and Feminist Economics’, in Edward Fullbrook (ed.), The Crisis in Economics, The Post Autistic Economics Movement: The First 600 Days, Part 3, London, UK: Routledge, 189–9214. Marc Lavoie (2006), ‘Do Heterodox Theories Have Anything in Common? A Post-Keynesian Point of View’, European Journal of Economics and Economic Policies: Intervention, 3 (1), May, 87–11215. J. E. King (2012), ‘Post Keynesians and Others’, Review of Political Economy, 24 (2), April, 305–1916. John E. King (2013), ‘Should Post-Keynesians Make a Behavioural Turn?’, European Journal of Economics and Economic Policies: Intervention, 10 (2), September, 231–42PART III POST-KEYNESIAN ECONOMICS AND CRITICAL REALISM 17. Victoria Chick (1998), ‘On Knowing One’s Place: The Role of Formalism in Economics’, Economic Journal, 108 (451), November, 1859–6918. Sheila C. Dow (1999), ‘Post Keynesianism and Critical Realism: What is the Connection?’, Journal of Post Keynesian Economics, 22 (1), Fall, 15–3319. Mark Setterfield (2003), ‘Critical Realism and Formal Modelling: Incompatible Bedfellows?’, in Paul Downward (ed.), Applied Economics and the Critical Realist Critique, Part IIA, Chapter 5, London, UK: Routledge, 71–88 20. Therese Jefferson and John E. King (2011), ‘Michal Kalecki and Critical Realism’, Cambridge Journal of Economics, 35 (5), September, 957–72 PART IV MICROECONOMIC FOUNDATIONS OF POST-KEYNESIAN ANALYSIS 21. G. C. Harcourt and Peter Kenyon (1976), ‘Pricing and the Investment Decision’, Kyklos, 29 (3), January, 449–7722. Alfred S. Eichner (1983), ‘The Micro Foundations of the Corporate Economy’, Managerial and Decision Economics, 4 (3), September, 136–5223. E. Agliardi (1988), ‘Microeconomic Foundations of Macroeconomics in the Post-Keynesian Approach’, Metroeconomica, 39 (3), October, 275–9724. Marc Lavoie (1994), ‘A Post Keynesian Approach to Consumer Choice’, Journal of Post Keynesian Economics, 16 (4), Summer, 539–6225. Marc Lavoie (1996), ‘Mark-up Pricing versus Normal Cost Pricing in Post-Keynesian Models’, Review of Political Economy, 8 (1), January, 57–6626. Paul Downward (2000), ‘A Realist Appraisal of Post-Keynesian Pricing Theory’, Cambridge Journal of Economics, 24 (2), March, 211–24 27. Claudio Sardoni (2002), ‘On the Microeconomic Foundations of Macroeconomics: A Keynesian Perspective’, in Philip Arestis, Meghnad Desai and Sheila Dow (eds), Methodology, Micrcoeconomics and Keynes: Essays in Honour of Victoria Chick, Volume Two, Chapter 2, London, UK: Routledge, 4–1428. John E. King (2009), ‘Microfoundations?’ in Eckhard Hein, Torsten Niechoj and Engelbert Stockhammer (eds), Macroeconomic Policies on Shaky Foundations: Whither Mainstream Economics?, Part I, Marburg, Germany: Metropolis-Verlag, 33–5329. Frederic S. Lee (2010), ‘A Heterodox Teaching of Neoclassical Microeconomic Theory’, International Journal of Pluralism and Economics Education, 1 (3), 203–35PART V POST-KEYNESIAN ECONOMICS AND ITS CRITICS 30. Philip Arestis, Stephen P. Dunn and Malcolm Sawyer (1999), ‘Post Keynesian Economics and its Critics’, Journal of Post Keynesian Economics, 21 (4), Summer, 527–4931. Bernard Walters and David Young (1999), ‘Is Critical Realism the Appropriate Basis for Post Keynesianism?’, Journal of Post Keynesian Economics, 22 (1), Fall, 105–2332. Philip Arestis, Stephen P. Dunn and Malcolm Sawyer (1999), ‘On the Coherence of Post-Keynesian Economics: A Comment on Walters and Young’, Scottish Journal of Political Economy, 46 (3), August, 339–45 33. Frederic S. Lee (2012), ‘Heterodox Economics and its Critics’, Review of Political Economy, 24 (2), April, 337–51PART VI THE FUTURE OF POST-KEYNESIAN ECONOMICS 34. Giuseppe Fontana (2003), ‘Reflections on the Development of Post Keynesian Economics’, History of Economic Ideas, XI (3), 87–9435. Giuseppe Fontana and Bill Gerrard (2006), ‘The Future of Post Keynesian Economics’, Banca Nazionale del Lavoro Quarterly Review, LIX (236), March, 49–8036. Engelbert Stockhammer and Paul Ramskogler (2009), ‘Post-Keynesian Economics – How to Move Forward’, European Journal of Economics and Economic Policies: Intervention, 6 (2), November, 227–4637. Matías Vernengo (2013), ‘Conversation or Monologue? On Advising Heterodox Economists, with Addendum’, in Frederic S. Lee and Marc Lavoie (eds), In Defense of Post-Keynesian and Heterodox Economics: Responses to their Critics, Chapter 8, Abingdon, UK: Routledge, 158–71 38. Marc Lavoie (2013), ‘After the Crisis: Perspectives for Post-Keynesian Economics’, in Frederic S. Lee and Marc Lavoie (eds), In Defense of Post-Keynesian and Heterodox Economics: Responses to their Critics, Chapter 2, Abingdon, UK: Routledge, 18–41Volume II: Credit, Money and Production - Louis-Philippe Rochon and Sergio Rossi Contents:AcknowledgementsIntroduction An introduction by the editors appears in Volume IPART IKEYNES AND KALECKI ON MONEY AND FINANCE 1. Paul Davidson (1965), ‘Keynes’s Finance Motive’, Oxford Economic Papers, 17 (1), March, 47–652. A. Asimakopulos (1983), ‘Kalečki and Keynes on Finance, Investment and Saving’, Cambridge Journal of Economics, 7 (3–4), September–December, 221–333. Augusto Graziani (1984), ‘The Debate on Keynes’ Finance Motive’, Economic Notes, 13 (1), 5–334. Jörg Bibow (1995), ‘Some Reflections on Keynes’s “Finance Motive” for the Demand for Money’, Cambridge Journal of Economics, 19 (5), October, 647–665. Louis-Philippe Rochon (1997), ‘Keynes’s Finance Motive: A Re-assessment. Credit, Liquidity Preference and the Rate of Interest’, Review of Political Economy, 9 (3), 277–93PART IIBANKS, CREDIT AND MONEY FROM A POST KEYNESIAN PERSPECTIVE 6. Marc Lavoie (1984), ‘The Endogenous Flow of Credit and the Post Keynesian Theory of Money’, Journal of Economic Issues, XVIII (3), September, 771–977. Philip Arestis (1987), ‘Post-Keynesian Theory of Money, Credit and Finance’, Thames Papers in Political Economy, Spring, 1–228. Louis-Philippe Rochon and Sergio Rossi (2013), ‘Endogenous Money: The Evolutionary versus Revolutionary Views’, Review of Keynesian Economics, 1 (2), Summer, 210–29 PART IIITHE THEORY OF THE MONETARY CIRCUIT 9. Edward J. Nell (1967), ‘Wicksell’s Theory of Circulation’, Journal of Political Economy, 75 (4), August, 386–94 10. Augusto Graziani (1989), ‘The Theory of the Monetary Circuit’, Thames Papers in Political Economy, Spring, 1–26 11. Riccardo Bellofiore (1992), ‘Monetary Macroeconomics before the General Theory: The Circuit Theory of Money in Wicksell, Schumpeter and Keynes’, Social Concept, 6 (2), 47–8912. Jacques Le Bourva (1992), ‘Money Creation and Credit Multipliers’, Review of Political Economy, 4 (4), 447–6613. Louis-Philippe Rochon (1999), ‘The Creation and Circulation of Endogenous Money: A Circuit Dynamique Approach’, Journal of Economic Issues, XXIII (1), March, 1–2114. Alain Parguez and Mario Seccareccia (2000), ‘The Credit Theory of Money: The Monetary Circuit Approach’, in John Smithin (ed.), What is Money?, Chapter 5, London, UK: Routledge, 101–2315. Biagio Bossone (2001), ‘Circuit Theory of Banking and Finance’, Journal of Banking and Finance, 25 (5), May, 857–9016. Sergio Rossi (2009), ‘Monetary Circuit Theory and Money Emissions’, in Jean-François Ponsot and Sergio Rossi (eds), The Political Economy of Monetary Circuits: Tradition and Change in Post-Keynesian Economics, Chapter 3, Basingstoke, UK and New York, NY, USA: Palgrave Macmillan, 36–55PART IVTHE THEORY OF ENDOGENOUS MONEY: EARLY DEVELOPMENTS17. Stephen W. Rousseas (1960), ‘Velocity Changes and the Effectiveness of Monetary Policy, 1951–57’, Review of Economics and Statistics, 42 (1), February, 27–36 18. Nicholas Kaldor (1970), ‘The New Monetarism’, Lloyds Bank Review, 97, July, 1–1819. Paul Davidson and Sidney Weintraub (1973), ‘Money as Cause and Effect’, Economic Journal, 83 (332), December, 1117–3220. Nicholas Kaldor and James A. Trevithick (1981), ‘A Keynesian Perspective on Money’, Lloyds Bank Review, 139, January, 1–19PART VTHE THEORY OF ENDOGENOUS MONEY: HORIZONTALIST/STRUCTURALIST DEBATES 21. Allin Cottrell (1986), ‘The Endogeneity of Money and Money-Income Causality’, Scottish Journal of Political Economy, 33 (1), February, 2–2722. Basil J. Moore (1991), ‘Money Supply Endogeneity: “Reserve Price Setting” or “Reserve Quantity Setting”?’, Journal of Post Keynesian Economics, 13 (3), Spring, 404–1323. Robert Pollin (1991), ‘Two Theories of Money Supply Endogeneity: Some Empirical Evidence’, Journal of Post Keynesian Economics, 13 (3), Spring, 366–9624. Thomas I. Palley (1994), ‘Competing Views of the Money Supply Process: Theory and Evidence’, Metroeconomica, 45 (1), February, 67–88 25. Sheila C. Dow (1996), ‘Horizontalism: A Critique’, Cambridge Journal of Economics, 20 (4), July, 497–50826. Marc Lavoie (1996), ‘Horizontalism, Structuralism, Liquidity Preference and the Principle of Increasing Risk’, Scottish Journal of Political Economy, 43 (3), August, 275–300 27. Marc Lavoie (1999), ‘The Credit-Led Supply of Deposits and the Demand for Money: Kaldor’s Reflux Mechanism as Previously Endorsed by Joan Robinson’, Cambridge Journal of Economics, 23 (1), January, 103–1328. Mario Seccareccia (2003), ‘Pricing, Investment and the Financing of Production within the Framework of the Monetary Circuit: Some Preliminary Evidence’, in Louis-Philippe Rochon and Sergio Rossi (eds), Modern Theories of Money: The Nature and Role of Money in Capitalist Economies, Chapter 9, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing, 173–9729. Giuseppe Fontana (2004), ‘Rethinking Endogenous Money: A Constructive Interpretation of the Debate between Horizontalists and Structuralists’, Metroeconomica, 55 (4), November, 367–85PART VI MODERN MONEY THEORY AND ITS CRITICS 30. Warren Mosler (1997–98), ‘Full Employment and Price Stability’, Journal of Post Keynesian Economics, 20 (2), Winter, 167–8231. Sergio Rossi (1999), ‘Review of “Understanding Modern Money”’, Kyklos, 52 (3), August, 483–485 32. Stephanie Bell (2000), ‘Do Taxes and Bonds Finance Government Spending?’ Journal of Economic Issues, XXXIV (3), September, 603–2033. Louis-Philippe Rochon and Matías Vernengo (2003), ‘State Money and the Real World: Or Chartalism and its Discontents’, Journal of Post Keynesian Economics, 26 (1), Fall, 57–67 34. Claude Gnos and Louis-Philippe Rochon (2002), ‘Money Creation and the State: A Critical Assessment of Chartalism’, International Journal of Political Economy, 32 (3), Fall, 41–5735. Marc Lavoie (2013), ‘The Monetary and Fiscal Nexus of Neo-Chartalism: A Friendly Critique’, Journal of Economic Issues, XLVII (1), March, 1–31PART VII CENTRAL BANKING, MONETARY POLICY AND INTEREST RATE SETTING 36. Philip Arestis and Malcolm Sawyer (2004), ‘On the Effectiveness of Monetary Policy and of Fiscal Policy’, Review of Social Economy, LXII (4), December, 441–63 37. Giuseppe Fontana and Alfonso Palacio-Vera (2007), ‘Are Long-Run Price Stability and Short-Run Output Stabilization All That Monetary Policy Can Aim For?’, Metroeconomica, 58 (2), May, 269–9838. Louis-Philippe Rochon and Sergio Rossi (2007), ‘Central Banking and Post-Keynesian Economics’, Review of Political Economy, 19 (4), October, 539–5439. Louis-Philippe Rochon and Mark Setterfield (2008), ‘The Political Economy of Interest-Rate Setting, Inflation, and Income Distribution’, International Journal of Political Economy, 37 (2), Summer, 5–25 40. Mark Setterfield (2009), ‘Macroeconomics without the LM Curve: An Alternative View’, Cambridge Journal of Economics, 33 (2), March, 273–9341. Scott T. Fullwiler (2013), ‘An Endogenous Money Perspective on the Post-Crisis Monetary Policy Debate’, Review of Keynesian Economics, 1 (2), Summer, 171–94Volume III: Employment, Distribution, Growth, Development, Asset Bubbles and Financial Crises - Louis-Philippe Rochon and Sergio Rossi Contents:AcknowledgementsIntroduction An introduction by the editors appears in Volume IPART I EMPLOYMENT, PRIVATE DEBT AND INCOME DISTRIBUTION1. Amitava Krishna Dutt (1984), ‘Stagnation, Income Distribution and Monopoly Power’, Cambridge Journal of Economics, 8 (1), March, 25–402. Massimo Pivetti (1985), ‘On the Monetary Explanation of Distribution’, Political Economy: Studies in the Surplus Approach, 1 (2), 73–1033. Amit Bhaduri and Stephen Marglin (1990), ‘Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies’, Cambridge Journal of Economics, 14 (4), December, 375–934. Amitava Krishna Dutt (1992), ‘Conflict Inflation, Distribution, Cyclical Accumulation and Crises’, European Journal of Political Economy, 8 (4), December, 579–975. Steven Pressman and Robert Scott (2009), ‘Consumer Debt and the Measurement of Poverty and Inequality in the US’, Review of Social Economy, LXVII (2), June, 127–486. Aldo Barba and Massimo Pivetti (2009), ‘Rising Household Debt: Its Causes and Macroeconomic Implications – a Long-Period Analysis’, Cambridge Journal of Economics, 33 (1), January, 113–37PART IIWAGE-LED OR PROFIT-LED ECONOMIC GROWTH 7. Robert A. Blecker (1989), ‘International Competition, Income Distribution and Economic Growth’, Cambridge Journal of Economics, 13 (3), September, 395–4128. Marc Lavoie (1995), ‘Interest Rates in Post-Keynesian Models of Growth and Distribution’, Metroeconomica, 46 (2), June, 146–779. Robert Boyer (2005), ‘From Shareholder Value to CEO Power: The Paradox of the 1990s’, Competition and Change, 9 (1), March, 7–4710. Eckhard Hein (2007), ‘Interest Rate, Debt, Distribution and Capital Accumulation in a Post-Kaleckian Model’, Metroeconomica, 58 (2), May, 310–3911. Amit Bhaduri (2008), ‘On the Dynamics of Profit-Led and Wage-Led Growth’, Cambridge Journal of Economics, 32 (1), January, 147–6012. Engelbert Stockhammer and Özlem Onaran (2013), ‘Wage-Led Growth: Theory, Evidence, Policy’, Review of Keynesian Economics, 1 (1), Spring, 61–78PART III THE IMPORTANCE OF FISCAL POLICY13. Sebastian Dullien (2012), ‘Is New Always Better than Old? On the Treatment of Fiscal Policy in Keynesian Models’, Review of Keynesian Economics: Inaugural Issue, 0 (1), Autumn, 5–2314. Hassan Bougrine (2012), ‘Fiscal Austerity, the Great Recession and the Rise of New Dictatorships’, Review of Keynesian Economics: Inaugural Issue, 0 (1), Autumn, 109–2515. Philip Arestis (2012), ‘Fiscal Policy: A Strong Macroeconomic Role’, Review of Keynesian Economics: Inaugural Issue, 0 (1), Autumn, 93–10816. Nathan Perry and Matías Vernengo (2014), ‘What Ended the Great Depression? Re-evaluating the Role of Fiscal Policy’, Cambridge Journal of Economics, 38 (2), March, 349–67PART IV SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL ISSUES 17. Richard P. F. Holt (2005), ‘Post-Keynesian Economics and Sustainable Development’, International Journal of Environment, Workplace and Employment, 1 (2), 174–8618. Giuseppe Fontana and Malcolm Sawyer (2013), ‘Post-Keynesian and Kaleckian Thoughts on Ecological Macroeconomics’, European Journal of Economics and Economic Policies: Intervention, 10 (2), September, 256–6719. Neil Perry (2013), ‘Environmental Economics and Policy’, in G. C. Harcourt and Peter Kriesler (eds), The Oxford Handbook of Post-Keynesian Economics, Volume 2: Critiques and Methodology, Chapter 18, New York, NY, USA: Oxford University Press, 391–41120. Armon Rezai, Lance Taylor and Reinhard Mechler (2013), ‘Ecological Macroeconomics: An Application to Climate Change’, Ecological Economics, 85, January, 69–76PART VPAYMENT SYSTEMS AND FINANCIAL CRISES 21. Hyman P. Minsky (1977), ‘The Financial Instability Hypothesis: An Interpretation of Keynes and an Alternative to “Standard” Theory’, Challenge, 20 (1), March–April, 20–2722. James R. Crotty (1990), ‘Owner-Manager Conflict and Financial Theories of Investment Instability: A Critical Assessment of Keynes, Tobin, and Minsky’, Journal of Post Keynesian Economics, 12 (4), Summer, 519–4223. Martin H. Wolfson (1996), ‘A Post Keynesian Theory of Credit Rationing’, Journal of Post Keynesian Economics, 18 (3), Spring, 443–7024. Scott T. Fullwiler (2003), ‘Timeliness and the Fed’s Daily Tactics’, Journal of Economic Issues, XXXVII (4), December, 851–8025. Jan Toporowski (2008), ‘Minsky’s “Induced Investment and Business Cycles”’, Cambridge Journal of Economics, 32 (5), September, 725–3726. Sergio Rossi (2010), ‘The 2007–9 Financial Crisis: An Endogenous-Money View’, Studi e Note di Economia, XV (3), 413–3027. Sergio Rossi (2015), ‘Structural Reforms in Payment Systems to Avoid Another Systemic Crisis’, Review of Keynesian Economics, 3 (2), Summer, 213–25PART VI FINANCIALISATION AND ASSET BUBBLES 28. Engelbert Stockhammer (2004), ‘Financialisation and the Slowdown of Accumulation’, Cambridge Journal of Economics, 28 (5), September, 719–4129. Gennaro Zezza (2008), ‘U.S. Growth, the Housing Market, and the Distribution of Income’, Journal of Post Keynesian Economics, 30 (3), Spring, 375–401 30. Yongbok Jeon and Matías Vernengo (2008), ‘Puzzles, Paradoxes, and Regularities: Cyclical and Structural Productivity in the United States (1950–2005)’, Review of Radical Political Economics, 40 (3), Summer, 237–4331. Robert Guttmann (2009), ‘Asset Bubbles, Debt Deflation, and Global Imbalances’, International Journal of Political Economy, 38 (2), Summer, 45–6832. Dirk J. Bezemer (2010), ‘Understanding Financial Crisis through Accounting Models’, Accounting, Organizations and Society, 35 (7), October, 676–8833. Özgür Orhangazi (2012), ‘”Financial” vs. “Real”: An Overview of the Contradictory Role of Finance’, Research in Political Economy: Revitalizing Marxist Theory for Today’s Capitalism, 27, 121–48 34. Engelbert Stockhammer (2012), ‘Financialization, Income Distribution and the Crisis’, Investigación Económica, LXXI (279), January–March, 39–7035. Riccardo Bellofiore (2013), ‘Endogenous Money, Financial Keynesianism and Beyond’, Review of Keynesian Economics, 1 (2), Summer, 153–70PART VII INTERNATIONAL MONETARY ARCHITECTURE36. Paul Davidson (1992–1993), ‘Reforming the World’s Money’, Journal of Post Keynesian Economics, 15 (2), Winter, 153–79 37. Jane D’Arista (2004), ‘Dollars, Debt, and Dependence: The Case for International Monetary Reform’, Journal of Post Keynesian Economics, 26 (4), Summer, 557–7238. Robert Skidelsky (2005), ‘Keynes, Globalisation and the Bretton Woods Institutions in the Light of Changing Ideas about Markets’, World Economics, 6 (1), January–March, 15–3039. Pietro Alessandrini and Michele Fratianni (2009), ‘Resurrecting Keynes to Stabilize the International Monetary System’, Open Economies Review, 20 (3), July, 339–58 40. Lilia Costabile (2009), ‘Current Global Imbalances and the Keynes Plan: A Keynesian Approach for Reforming the International Monetary System’, Structural Change and Economic Dynamics, 20 (2), June, 79–8941. Nadia F. Piffaretti (2009), ‘Reshaping the International Monetary Architecture: Lessons from the Keynes Plan’, Banks and Bank Systems, 4 (1), 45–5442. Sergio Rossi (2009), ‘International Payment Finality Requires a Supranational Central-Bank Money: Reforming the International Monetary Architecture in the Spirit of Keynes’, China-USA Business Review, 8 (11), November, 1–20 43. Anna M. Carabelli and Mario A. Cedrini (2010), ‘Global Imbalances, Monetary Disorder, and Shrinking Policy Space: Keynes’s Legacy for our Troubled World’, European Journal of Economics and Economic Policies: Intervention, 7 (2), November, 303–2344. Alvaro Cencini (2010), ‘For a New System of International Payments’, Banks and Bank Systems, 5 (1), 47–57Index

‘With the neoclassical mainstream in disarray, this anthology on post-Keynesian economics is very timely, providing a great many building blocks to set up a coherent alternative. Articles on method are followed by contributions on fundamentals: credit, money, production, employment, and distribution. Fascinating themes are taken up: wage-led or profit-led economic growth, financialisation and asset bubbles, and international monetary architecture. The collection brings together the classical (Ricardian) tradition of political economy, revived by Sraffa, along with Keynes’s theory of effective demand, complemented by endogenous money as Joan Robinson had suggested in the 1950s. To systematically realise this project amounts to working out a monetary theory of production as originally envisaged by Keynes in 1933.’