## Foundations of Post-Keynesian Economic AnalysisThis innovative book demonstrates that it is possible to construct a coherent alternative to neoclassical economics based on the contributions of post Keynesian and Kaleckian economists. It identifies elements from the non-orthodox traditions, in particular from the neo-Ricardian school, that can be welded into a convincing alternative theoretical framework. The building blocks of this synthesis are the non-neo-classical microeconomic foundations of the theory of choice and of the firm. By emphasizing the consequences of a world characterized by true uncertainty and oligopolistic dominance, Marc Lavoie extends short-period paradoxes to the analysis of the long period, and bases these macroeconomic results on microeconomic foundations. |

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Page 290

The Wage/Profit Frontier and the Inflation Barrier One of the major features of the

neo-Keynesian model is that it transposes Keynes's

period. As we saw in the previous chapter, any increase in the propensities to ...

The Wage/Profit Frontier and the Inflation Barrier One of the major features of the

neo-Keynesian model is that it transposes Keynes's

**paradox of thrift**to the longperiod. As we saw in the previous chapter, any increase in the propensities to ...

Page 313

There is again proof, as one would have expected from the analysis already

performed in the case of a given rate of growth, that the

to the long period. Let us now consider an increase in the relative budget deficit,

...

There is again proof, as one would have expected from the analysis already

performed in the case of a given rate of growth, that the

**paradox of thrift**extendsto the long period. Let us now consider an increase in the relative budget deficit,

...

Page 326

The

the displacement of both curves. This problem can be avoided by using the

profits cost curve and the effective demand curve. Starting from the same

equations ...

The

**paradox of thrift**is preserved. Changes in most of the other variables involvethe displacement of both curves. This problem can be avoided by using the

profits cost curve and the effective demand curve. Starting from the same

equations ...

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### Contents

Theory of Choice | 42 |

Theory of the Firm | 94 |

Credit and Money | 149 |

Copyright | |

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### Common terms and phrases

actual rate aggregate demand analysis assumed base money behaviour borrow capacity utilization capital central bank changes Chapter commercial banks consumers consumption cost-plus pricing deposits economists effective demand effective demand curve Eichner endogenous equal equation equilibrium exogenous Figure firms full capacity given higher rate households impact income income effects increase induce interest rates investment function Kaldor Kalecki Kaleckian model Keynes Keynesian liquidity preference loans long run macroeconomic margin of profit marginal costs model of growth needs neo-Ricardians neoclassical economics neoclassical theory normal rate overhead labour paradox of thrift parameters positive post-classical post-Keynesian economics procedural rationality profits cost curve propensity to save rate of accumulation rate of capacity rate of growth rate of interest rate of profit rate of return rate of utilization ratio real wage rate reserves result Robinson sector share of profits standard rate target-return pricing technical progress tion uncertainty utilization of capacity workers