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Keynesian Vs Post-Keynesian
The Keynesian revolution hasn't been helped by many heterodox economists either, even by those who
claim to be Post Keynesians where you would expect at least some adherence to the Keynesian" of Post
Keynesian economics
...

Although there exists following comparisons that differ each other,as:

Keynesian

Post-Keynesian
Notion

"Keynes tried to develop a theory that would be
relevant to the capitalist economies of his day,
economies that existed in historical time
...
The
degree of utilization of the existing productive
capacity and the level of employment, depends on
the short-term expectations of the proceeds to be
obtained from the sale of the resulting output
...
The nature of time is such that
markets do not always clear
...
Post Keynesian
economists emphasize the institutional setting of
the economy and the social relationships therein
...
The way the world thinks
about economic problems
...
To
be able to do this we need to find some common
ground
...
He saw the economy as unable to
maintain itself in equilibrium and believed that it
was necessary for the government to step in and
put under-utilized savings to work through
government spending
...


Post Keynesian significance can be defined as, The
first is the importance of historical time; the
second is that the future is uncertain where
expectations have a significant and unavoidable
impact on economic events; and finally the
importance of institutions, economic and political
forces in shaping economic events
...


Difficulties
The primary problems they see with Keynes are
that he has no long-run analysis and his price
theory seems to be too neoclassical
...
In
fact, one of the tenets of the theory is that there

may not be any one definitive solution
...


Balancing Market
Keynesian economics advocates for the public
sector to step in to assist the economy generally,
which is a significant departure from popular
economic thought that preceded it laissez-faire
capitalism
...
The
belief was that an unfettered market would
achieve balance on its own
...


Short run Vs Long run
A synthesis of "Keynes's effective demand, set in
the short run" and the "central tendencies" of the
"long period" of the neo-Ricardians, then it seems
simply conceded to the mainstream that
equilibrium analysis is all that needed
...


Economic Process
Keynes believed that fundamental uncertainty is a
crucial element in any economic processes
...
The
nature and power of market forces cannot deal
with the unpredictability of the long run and
relying on them to do so will lead to incomplete
information
...

However, in a world of ignorance and of
complexity, these rules of thumb are rational
...
"

Role of Institutions
Given the precarious nature of the future, Keynes
recognized that long-term development required
institutional arrangements where we have public
servants trained in policy issues
...
The first looks at the general development
and institutional structure of capitalism over a
variety of time and societies
...


1)The government as a sovereign issuer of
money
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





draw many implications from it
...
Keynesians say
that if there is a sharp rise in private sector
borrowing, government spending can offset
this decline in spending
...
A key element in
Keynesian theory is the idea of a ‘glut’ in
savings
...

This was a rational choice, but it contributes to
an even bigger decline in AD and GDP
...
In a recession, Keynes
said wages may be ‘sticky downward’ as
unions resist nominal wage cuts, this can lead
to real wage unemployment
...


3)Financial transactions always create an

6) Keynesians believe there is often a
multiplier effect
...




7) Generally, Keynesians are more likely to
stress the importance of reducing
unemployment rather than inflation
...


2)The government doesn't collect taxes or
spend them
...
So taxing money out of the economy is
the same as destroying it
...
There are always three
parties, not two, involved in a transaction:
buyer, seller, and bank
...
Cash ("high-powered money")
is a liability of the Fed, credit (like credit cards)
is a liability of your bank, and that credit is
created by loaning out against the bank's
reserve of high-powered money
...
" Government
spending does not crowd out monetary
resources because spending "creates" more
money
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Banks can
loan reserves to each other or get money from
the Fed's discount window, making the money
multiplier a formality without much real
meaning
...
Post-Keynesians
believe the market is dynamic and rarely if
ever in equilibrium (i
...
, the market is never
fully efficient)
...

8)Rejection of homo economicus
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10)Importance of the credit cycle as part of the
business cycle

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