Post Keynesian Macroeconomic Theory, Second Edition: A Foundation for Successful Economic Policies for the Twenty-first Century

In this updated and revised edition of Post Keynesian Macroeconomic Theory, Paul Davidson explains how and why contemporary macroeconomic textbooks fail to incorporate Keynes's liquidity and financial analysis framework to explain the importance of money and financial markets in the real world of experience.

This important text develops Keynes's analytical framework for both closed and open economies and provides policy guidance for the global economy of the twenty-first century. In particular, it deals with problems such as inflation, financial contagion, global unemployment, outsourcing, trade patterns, and developing an international financial system that encourages expansionary growth among all trading partners while avoiding sovereign debt problems.

Using this textbook in macroeconomics courses will provide students with a pragmatic insight that will be both useful and productive.

Contents: 1. The Background for Keynes's Revolution; 2. The Essential Difference between the General Theory and the Classical System; 3. Taxonomy, Axioms, and Expenditures Related to Income: Keynes's D1 Category; 4. Investment Spending; 5. Government and the Level of Output; 6. Delving Further into the Relationship between Money, Liquidity and Uncertainty; 7. Liquidity Preference - the Basis of Keynes's Revolution; 8. The Finance Motive and the Interdependence of the Real and Monetary Sectors; 9. Financial Markets, Fast Exits and Great Depressions and Recessions; 10. Inflation: Causes and Cures; 11. Keynes's Aggregate Supply and Demand Analysis; 12. The Demand and Supply of Labour; 13. Money in an International Setting; 14. Trade Imbalances and International Payments; 15. International Liquidity and Exchange Rate Stability; 16. Financing the Wealth of Nations; 17. Export-Led Growth and a Proposal for an International Payments Scheme; 18. Epilogue: Truth in Labelling and Economic Textbooks