Keynes and Post-Keynesian Economics

However, the methodology of their economic analysis varies and they do not have an agreed economic model, which integrates all the pluralistic models they propose. This is, one of the weaknesses of the Post-Keynesian economic school of thought to be an acceptable economic model in practical terms. That is to propose and develop economic policies, which are effective than the current economic policies based on the mainstream Keynesian and Monetary macroeconomic analysis.

Some Post-Keynesians uses some of the insights of Keynes but include other factors in   their analysis and also reject the Keynesian assumption of the ability of the market potential for equilibrium even in the long-term and the possibility of disequilibrium for a period. As well, all Post-Keynesians also agree that the future of the economy trend cannot be predicted with accuracy and the outcome of any policy is very uncertain and there is no trend in the path of the market system to evolve in to another economic system. They also have some degree of consensus of dynamic models than static or equilibrium models to study the economic system. They also have an inter- disciplinary approach to economics and wider economic issues as their subject matter than the mainstream economist issues they propose to be within the ambit of economics.

However, at least some of the Post-Keynesian economists have some common grounds with the mainstream economist in the sense that they also have the axiom like the mainstream economist that the economy need not be changing in a radical manner in the sense it cannot be predicted what is the future. As well, most Post-Keynesians also reject Marxist economic analysis of capitalism in varying degrees like the mainstream economists.

Conclusions

As discussed above, Post-Keynesians have some common grounds with the mainstream economist at least some Post-Keynesians. However, they have different methodology and economic model than the mainstream economists as they take in to account the real world complexities in their economic analysis. In this sense they differ considerably from mainstream economists particularly from classical, neo-classical and to some extent from Marxist models of economic analysis. However, at the present time Post-Keynesians are not homogeneous and they do not have an alternative economic model unifying all their insights and they contradict with each other. In addition, Post-Keynesians are closer to Keynes at least some of them than the other economic schools of thought. Given the variety of models of Post-Keynesians they however shed light on the limitations of the classical and neo-classical macroeconomic and mainstream economic analysis. That is, it is important that these insights must be incorporated in the future development of economic analysis and studying the economy as whole in its complexity to develop effective economic policies to address macroeconomic issues.