For the last 15 years there have been extensive discussions about the foundations of Post Keynesian economics. From these discussions, Post Keynesians have reached the consensus that their economics is based on a philosophical foundation of realism and critical realism. However, the methodological foundation of Post Keynesian economics, which refers to the methodological guidelines used for creating and developing theory, has received relatively less discussion and development. The aim of this paper is to stimulate discussion in this area by advocating that the method of grounded theory is consistent with critical realism and is a better and more developed set of guidelines for theory creation than the currently accepted alternatives. Copyright 2002, Oxford University Press.
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