Post Keynesian Economics

This workshop was originally taught at the Summer Academy for Pluralist Economics 2021
Instructor: Valeria Jimenez 

Module description

Qualification goals / Outcome:

After completing the workshop in Post Keynesian Economics participants should be able to describe the main differences and similarities between PKE and other schools of thought. They should understand the main theoretical foundations in PKE and have a basic understanding of Post-Keynesian models, including SFC models. They should also be able to explain what hysteresis is and be able to discuss policy proposals such as a job guarantee.

Course content:

The workshop begins with a discussion of the historical development of PKE and a comparison with different schools of thought. Participants will learn the main theoretical foundations within the PK school, with modules dedicated to the theories of choice,output and employment, endogenous money and monetary policy, inequality and inflation, and theories of growth. The foundations of SFC modeling will be presented, and two topical issues (job guarantee and hysteresis) will be discussed.

Teaching methods:

Workshop - Mixture of new content a lecture, prepared reading, and short presentations and in-class discussion. There will be some working tasks during the sessions and discussion will be encouraged. Participants will also take some time to develop a final project that will be presented in the final plenary session of the summer academy.

Kind of module:

This Module can either be accomplished in a compulsory or elective module, depending on the degree programme. In every degree programme it might be suited for elective or transdisciplinary modules. In degree programmes in economics or with parts in economics, it might be suited for advanced courses, too.

Requirements for participation:

English level B2
Basic knowledge macroeconomics

Requirements for granting credit points

Assessment pattern

The assessment will be an essay which will be graded following a evaluation sheet.

Module coordinator

The module is carried out by the Netzwerk Plurale Ökonomik e.V. Responsible staff:
Janina Urban, M.Sc.  and Anita Lehner, M.A.

Module teaching staff

Valeria Jimenez , M.A International Economics (HWR Berlin), Master in Political Economy and Analysis (Universite Sorbonne Paris Nord). Currently working as Junior researcher at the HWR Berlin.

Reading List

1. What is Post-Keynesian Economics (PKE)
   Lavoie (2014) Chapter 1; Hein (2017)
2. PKE Theory of choice
   Lavoie (2014) Chapter 2
3. PKE Theories of Output and Employment
   Lavoie (2014) Chapter 5
4. PKE on Money, Monetary Policy and Inflation
   Lavoie (2014) Chapter 4
5. PKE on Growth and Inequality
   Hein (2014) Chapter 1, 6, 7
6. Introduction to SFC modelling
   Caverzasi and Godin (2015), Nikiforos and Zezza (2017); Godley and Lavoie (2007)
7. Topical issues: hysteresis and Job Guarantee
   Godin (2014); Tcherneva (2018); Cross (1993); Lavoie (2015); Sawyer (2003; 2004)

Literatur

• Lavoie, M. (2014) Post-Keynesian Economics: New Foundations, Edward Elgar Publishing Ltd, 2014, 688 pages.
• Hein, E. (2017): Post-Keynesian macroeconomics since the mid-1990s – main developments, European Journal of Economics and Economic Policies: Intervention, 14 (2): 131-172.
• Caverzasi, E., & Godin, A. (2015). Post-Keynesian stock-flow-consistent modelling: A survey. Cambridge Journal of Economics, 39(1), 157–187. https://doi.org/10.1093/cje/beu021
• Nikiforos, M., & Zezza, G. (2017). Stock-Flow Consistent Macroeconomic Models: A Survey. Journal of Economic Surveys, 31(5), 1204–1239. https://doi.org/10.1111/joes.12221
• Godley, W., & Lavoie, M. (2012). Monetary economics: An integrated approach to credit, money, income, production and wealth / Godley, Wynne; Lavoie, Marc (hower.160214). HoWeR. https://search.ebscohost.com/login.aspx?direct=true&db=cat03458a&AN=hower.160214&site=eds-live
• Godin, A. (2014). Job Guarantee: A Structuralist Perspective (edsbas.5CB4924E). BASE. http://regulation.revues.org/10988
• Tcherneva, P., 2018, “The Job Guarantee: Design, Jobs, and Implementation”, Levy Institute Working Paper, No. 902.
• Cross, R., 1993, “On the Foundations of Hysteresis in Economic Systems”, Economics and Philosophy, 9, 1, 53-74.
• Cross, R., & Lang, D. (2011). The NAIRU: Still “Not An Interesting Rate of Unemployment.” European Journal of Economics and Economic Policies: Intervention. https://hal.archives-ouvertes.fr/hal-01366010
• Sawyer, M. (2003): Employer of last resort: could it deliver full employment and price stability?, Journal of Economic Issues, 37: 881-907.
• Sawyer, M. (2004): Employer of last resort: a response to my critics, Journal of Economic Issues, 38: 256-264