Post keynesian
Post-Keynesian Theory Introduction One of the heterodox theories, Post-Keynesian Theory is a school of economic thought that had been developed from Keynesian economics. Pioneers are Sidney Weintraub, Paul Davidson, Joan Robinson and Hyman Minsky and George Shackle. The school born in Cambridge Economics School, which is John Maynard Keynes's main country. Post Keynesians claim that they are the real successor John Maynard Keynes and reject two other Keynesian schools such as New-Keynesian economics which is closer to Neoclassical Economics, and Neo-Keynesian Economics which have strictly orthodox. Unlike other schools, Post-Keynesians aimed the new economy model with Keynes's theories. In fact, some Post-Keynesian economists had a more progressive view than Keynes about labor policies and re-distribution. The foundation of the school was coming from the principle of effective demand which matters long-run an short-run with same. That means, In perfect competition or competitive market, there is no leaning to full employment. Unlike Neo-classical economists, Post-Keynesians rejects that market failure occurs from sticky wages and prices. So they don't accept IS/LM model which was strongly supported by Neo-Classical economists. According to Zeliha Goker and Kutlu Dane, to achieve full employment the state should either increase aggregate demand via investment and so the growth and employment will rise, or should create jobs as the “employer of last resort” for the ones who want to work, and so create infinitely elastic labor demand without any expectation of profit(Zeliha and Dane,2013). So the Post-Keynesian economists created a new school for improving economic methods and created solutions for rising inflations and fluctuations by supporting workers and providing income distribution. Assumptions and Disagreements According to Post Keynesians, uncertainty and time have to consider for economics situation. Also they reject to ideas of Monetarists