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A Post Keynesian theory of economic policy—filling a void

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Author Info
Arne Heise

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Abstract

The traditional theory of economic policy of the Tinbergen-Theil-type has come under severe criticism: in the ontological setting of the "new classical macroeconomics" based on the rational expectations hypothesis, economic policy is ineffective or neutral with respect to real variables. In the ontological setting of Hayekian economics based on informational deficiencies, economic policy is without orientation and, therefore, more harmful than helpful. Therefore, both criticisms are united in their rejection of state interventions. In this paper, a Post Keynesian alternative is presented which is situated between nomocratic abstinence and teleological controllability.

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File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B25280618307851J
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Publisher Info
Article provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.

Volume (Year): 31 (2009)
Issue (Month): 3 (April)
Pages: 383-401
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Handle: RePEc:mes:postke:v:31:y:2009:i:3:p:383-401

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348

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Related research
Keywords: economic policy; policy coordination; Post Keynesianism;

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This page was last updated on 2009-12-19.


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