Macroeconomic Methodology: A Post-Keynesian Perspective

Jesper Jespersen presents a treatise on the importance of the choice of methodology within macroeconomics. Given that no scientifically based macroeconomic policy recommendation should be established without an evaluation of the methods employed, this book gives a clear exposition of how proper macroeconomic analysis should be undertaken. Furthermore, it is convincingly argued that one of the lasting contributions of John Maynard Keynes was his emphasis on methodology; that macroeconomic consequences of uncertainty could not be analyzed within the established general equilibrium framework. It is due to post-Keynesian economics supported by critical realism that the understanding of Keynes's methodology has been resurrected, which has eventually resulted in renewed debate on realistic macroeconomic policies to restore full employment without inflation.

Macroeconomic Methodology is an inquiry into the question of how to conduct a proper scientific analysis of uncertainty within macroeconomics. It will be of great interest to scholars of the philosophy of social sciences and methodology, as well as post-Keynesian and heterodox economists.

Contents: Preface; Introduction; 1. Keynes-Inspired Macroeconomic Theory in a Methodological Perspective; 2. Macroeconomic Methodology: From a Critical Realist Perspective; 3. The Macroeconomic Landscape: An Example of an Ontological Reflection; 4. About Uncertainty, Risk and Limited Knowledge; 5. Uncertainty and 'the Economy as a Whole'; 6. Equilibrium and Path-dependence from a Perspective of Uncertainty; 7. The Fallacy of Composition; 8. Effective Demand: A Macroeconomic Causal Relationship; 9. Methodological Perspectives for Realistic Macroeconomic Research: A Summary; Bibliography; Index