- A Personal View of the Origin of Post-Keynesian Ideas in the History of Economics
- Sraffa, Keynes, and Post-Keynesianism
- Sraffa, Keynes, and Post-Keynesians Suggestions for a Synthesis in the Making
- On the Notion of Equilibrium or the Center of Gravitation in Economic Theory
- Keynesian Foundations of Post-Keynesian Economics
- Post-Keynesian Theories of Money and Credit Conflicts and (some) Resolutions
- The Scientific Illusion of New Keynesian Monetary Theory
- Single-Period Analysis and Continuation Analysis of Endogenous Money A Revisitation of the Debate between Horizontalists and Structuralists
- Post-Keynesian Monetary Economics, Godley-Like
- Hyman Minsky and the Financial Instability Hypothesis
- Endogenous Growth A Kaldorian Approach
- Structural Economic Dynamics and the Cambridge Tradition
- The Cambridge Post-Keynesian School of Income and Wealth Distribution
- Reinventing Macroeconomics What are the Questions?
- Long-Run Growth in Open Economies Export-led Cumulative Causation or a Balance-of-payments Constraint?
- Postkeynesian Precepts for Nonlinear, Endogenous, Nonstochastic, Business Cycle Theories
- Post-Keynesian Approaches to Industrial Pricing A Survey and Critique
- Post-Keynesian Price Theory From Pricing to Market Governance to the Economy as a Whole
- Kaleckian Economics
- Wages Policy
- Discrimination in the Labor Market
- Post-Keynesian Perspectives on Economic Development and Growth
- Keynes and Economic Development
- Post-Keynesian Economics and the Role of Aggregate Demand in Less-Developed Countries
Abstract and Keywords
It is shown that New Keynesian monetary theory is a scientific illusion because it rests on moneyless Walrasian general equilibrium microfoundations. Walrasian general equilibrium models require a Walrasian or an Arrow-Debreu auction, but this auction is a substitute for money and empties the model of all the issues of interest to regulators and central bankers. The New Keynesian model perpetuates Patinkin’s “invalid classical dichotomy” and is incapable of providing any guidance on the analysis of interest rate rules or inflation targeting. In its cashless limit, liquidity, inflation, and nominal interest rate rules cannot be defined in the New Keynesian model.
Colin Rogers is an Associate Professor (Retired), and a visitor to the University de Chile and the University of Adelaide.
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