IDEAS home Printed from https://ideas.repec.org/a/spr/revepe/v1y2020i1d10.1007_s43253-020-00003-6.html
   My bibliography  Save this article

The past, present and future of evolutionary macroeconomics

Author

Listed:
  • Malcolm Sawyer

    (University of Leeds)

Abstract

The key features of heterodox macroeconomic analysis are outlined. The relationships in general terms between micro-, meso- and macroeconomics are considered, specifically the nation state orientation of what is termed macroeconomics, and relate them to the analysis of a monetary production economy. Ideas on fundamental uncertainty have been a key component of heterodox macroeconomics and outline the implications of that in terms of decision-making and path dependency. Remarks on how organisations and institutions are approached in heterodox macroeconomics are made. The key roles of finance and money are examined. Heterodox macroeconomics has focused on the demand side of the economy. Attention is drawn to two areas where heterodox macroeconomic analysis has historically ignored though the last decade or so has seen developments: ecological economics and gender. There are some remarks on recent modelling techniques in heterodox macroeconomics.

Suggested Citation

  • Malcolm Sawyer, 2020. "The past, present and future of evolutionary macroeconomics," Review of Evolutionary Political Economy, Springer, vol. 1(1), pages 37-54, May.
    • Handle: RePEc:spr:revepe:v:1:y:2020:i:1:d:10.1007_s43253-020-00003-6
    DOI: 10.1007/s43253-020-00003-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43253-020-00003-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43253-020-00003-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michalis Nikiforos & Gennaro Zezza, 2017. "Stock-flow Consistent Macroeconomic Models: A Survey," Economics Working Paper Archive wp_891, Levy Economics Institute.
    2. Malcolm Sawyer, 2013. "What Is Financialization?," International Journal of Political Economy, Taylor & Francis Journals, vol. 42(4), pages 5-18.
    3. Elissa Braunstein & Irene van Staveren & Daniele Tavani, 2011. "Embedding Care and Unpaid Work in Macroeconomic Modeling: A Structuralist Approach," Feminist Economics, Taylor & Francis Journals, vol. 17(4), pages 5-31, October.
    4. Fontana, Giuseppe & Sawyer, Malcolm, 2016. "Towards post-Keynesian ecological macroeconomics," Ecological Economics, Elsevier, vol. 121(C), pages 186-195.
    5. Dafermos, Yannis & Nikolaidi, Maria, 2019. "Fiscal policy and ecological sustainability: a post-Keynesian perspective," Greenwich Papers in Political Economy 37777, University of Greenwich, Greenwich Political Economy Research Centre.
    6. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(2), pages 209-223.
    7. Taylor, Lance & Rezai, Armon & Foley, Duncan K., 2016. "An integrated approach to climate change, income distribution, employment, and economic growth," Ecological Economics, Elsevier, vol. 121(C), pages 196-205.
    8. Yannis Dafermos & Maria Nikolaidi, 2019. "Fiscal policy and ecological sustainability," FMM Working Paper 52-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    9. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-1255, December.
    10. Dosi, Giovanni & Fagiolo, Giorgio & Roventini, Andrea, 2010. "Schumpeter meeting Keynes: A policy-friendly model of endogenous growth and business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 34(9), pages 1748-1767, September.
    11. Mark Setterfield (ed.), 2002. "The Economics of Demand-Led Growth," Books, Edward Elgar Publishing, number 1864.
    12. Mark Setterfield (ed.), 2010. "Handbook of Alternative Theories of Economic Growth," Books, Edward Elgar Publishing, number 12814.
    13. Hannah Bargawi & Giovanni Cozzi, 2017. "Engendering Economic Recovery: Modeling Alternatives to Austerity in Europe," Feminist Economics, Taylor & Francis Journals, vol. 23(4), pages 225-249, October.
    14. Cozzi, Giovanni & Bargawi, Hannah, 2015. "Engendering economic recovery: modelling alternatives to austerity in Europe," Greenwich Papers in Political Economy 14061, University of Greenwich, Greenwich Political Economy Research Centre.
    15. Eckhard Hein, 2015. "Finance-dominated capitalism and re-distribution of income: a Kaleckian perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(3), pages 907-934.
    16. Giovanni Dosi & Andrea Roventini, 2019. "More is different ... and complex! the case for agent-based macroeconomics," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 1-37, March.
    17. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    18. Irene van Staveren, 2010. "Post-Keynesianism meets feminist economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(6), pages 1123-1144.
    19. R. L. Hall & C. J. Hitch, 1939. "Price Theory And Business Behaviour," Oxford Economic Papers, Oxford University Press, vol. 0(1), pages 12-45.
    20. Philip Arestis & Malcolm Sawyer, 2005. "Aggregate demand, conflict and capacity in the inflationary process," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(6), pages 959-974, November.
    21. Yannis Dafermos & Maria Nikolaidi, 2019. "Fiscal policy and ecological sustainability: A post-Keynesian perspective," Working Papers PKWP1912, Post Keynesian Economics Society (PKES).
    22. Victoria Chick, 1993. "The Evolution of the Banking System and the Theory of Monetary Policy," Palgrave Macmillan Books, in: Stephen F. Frowen (ed.), Monetary Theory and Monetary Policy, chapter 4, pages 79-92, Palgrave Macmillan.
    23. Gennaro Zezza & Francesco Zezza, 2019. "On the design of empirical stock–flow consistent models," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 16(1), pages 134-158, April.
    24. Malcolm Sawyer, 2002. "The NAIRU, Aggregate Demand and Investment," Metroeconomica, Wiley Blackwell, vol. 53(1), pages 66-94, February.
    25. McLeay, Michael & Radia, Amar & Thomas, Ryland, 2014. "Money creation in the modern economy," Bank of England Quarterly Bulletin, Bank of England, vol. 54(1), pages 14-27.
    26. Michalis Nikiforos & Gennaro Zezza, 2017. "Stock†Flow Consistent Macroeconomic Models: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1204-1239, December.
    27. David Dequech, 2011. "Uncertainty: A Typology and Refinements of Existing Concepts," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(3), pages 621-640.
    28. Gennaro Zezza & Francesco Zezza, 2019. "On the Design of Empirical Stock-Flow-Consistent Models," Economics Working Paper Archive wp_919, Levy Economics Institute.
    29. J. Barkley Rosser, 2015. "Reconsidering ergodicity and fundamental uncertainty," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 38(3), pages 331-354, October.
    30. Chick, Victoria, 1995. "Is There a Case for Post Keynesian Economics?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 42(1), pages 20-36, February.
    31. Elissa Braunstein & Rachid Bouhia & Stephanie Seguino, 2020. "Social reproduction, gender equality and economic growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 44(1), pages 129-156.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zuazu-Bermejo, Izaskun, 2024. "Reviewing feminist macroeconomics for the XXI century," ifso working paper series 30, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    2. Yannis Dafermos, 2022. "Climate change, central banking and financial supervision: beyond the risk exposure approach," Chapters, in: Sylvio Kappes & Louis-Philippe Rochon & Guillaume Vallet (ed.), The Future of Central Banking, chapter 8, pages 175-194, Edward Elgar Publishing.
    3. Klapkiv Lyubov & Ulgen Faruk, 2022. "An Evolutionary Perspective on the Endogenous Instability of Capitalist Dynamics," Central European Economic Journal, Sciendo, vol. 9(56), pages 291-308, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eckhard Hein, 2017. "Post-Keynesian macroeconomics since the mid 1990s: main developments," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 14(2), pages 131-172, September.
    2. Yannis Dafermos & Maria Nikolaidi, 2019. "Fiscal policy and ecological sustainability," FMM Working Paper 52-2019, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Dafermos, Yannis & Nikolaidi, Maria, 2019. "Fiscal policy and ecological sustainability: a post-Keynesian perspective," Greenwich Papers in Political Economy 37905, University of Greenwich, Greenwich Political Economy Research Centre.
    4. Dunz, Nepomuk & Naqvi, Asjad & Monasterolo, Irene, 2021. "Climate sentiments, transition risk, and financial stability in a stock-flow consistent model," Journal of Financial Stability, Elsevier, vol. 54(C).
    5. Francesco Lamperti & Andrea Roventini, 2022. "Beyond climate economics orthodoxy: impacts and policies in the agent-based integrated-assessment DSK model," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 19(3), pages 357-380, December.
    6. Huang, Bihong & Punzi, Maria Teresa & Wu, Yu, 2022. "Environmental regulation and financial stability: Evidence from Chinese manufacturing firms," Journal of Banking & Finance, Elsevier, vol. 136(C).
    7. Francesco Zezza & Gennaro Zezza, 2023. "A prototype regional stock‐flow consistent model," Metroeconomica, Wiley Blackwell, vol. 74(2), pages 266-287, May.
    8. Eric Kemp-Benedict & Emily Ghosh, 2018. "Downshifting in the Fast Lane: A Post-Keynesian Model of a Consumer-Led Transition," Economies, MDPI, vol. 6(1), pages 1-17, January.
    9. Campiglio, Emanuele, 2016. "Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy," Ecological Economics, Elsevier, vol. 121(C), pages 220-230.
    10. Christos Pierros, 2021. "Assessing the internal devaluation policy implemented in Greece in an empirical stock‐flow consistent model," Metroeconomica, Wiley Blackwell, vol. 72(4), pages 905-943, November.
    11. Jacques, Pierre & Delannoy, Louis & Andrieu, Baptiste & Yilmaz, Devrim & Jeanmart, Hervé & Godin, Antoine, 2023. "Assessing the economic consequences of an energy transition through a biophysical stock-flow consistent model," Ecological Economics, Elsevier, vol. 209(C).
    12. Dosi, Giovanni & Roventini, Andrea & Russo, Emanuele, 2019. "Endogenous growth and global divergence in a multi-country agent-based model," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 101-129.
    13. Michalis Nikiforos, 2018. "Some Comments on the Sraffian Supermultiplier Approach to Growth and Distribution," Economics Working Paper Archive wp_907, Levy Economics Institute.
    14. Eugenio Caverzasi & Alberto Russo, 2018. "Toward a new microfounded macroeconomics in the wake of the crisis," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 999-1014.
    15. Giovanni Dosi & Mauro Napoletano & Andrea Roventini & Joseph E. Stiglitz & Tania Treibich, 2020. "Rational Heuristics? Expectations And Behaviors In Evolving Economies With Heterogeneous Interacting Agents," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1487-1516, July.
    16. Bibhuti Ranjan Mishra, 2020. "Role of External and Domestic Demand in Economic Growth: A Study of BRICS Countries," Global Business Review, International Management Institute, vol. 21(2), pages 547-566, April.
    17. Marco Raberto & Bulent Ozel & Linda Ponta & Andrea Teglio & Silvano Cincotti, 2016. "From financial instability to green finance: the role of banking and monetary policies in the Eurace model," Working Papers 2016/07, Economics Department, Universitat Jaume I, Castellón (Spain).
    18. Marco Raberto & Bulent Ozel & Linda Ponta & Andrea Teglio & Silvano Cincotti, 2019. "From financial instability to green finance: the role of banking and credit market regulation in the Eurace model," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 429-465, March.
    19. Jackson, Andrew & Jackson, Tim, 2021. "Modelling energy transition risk: The impact of declining energy return on investment (EROI)," Ecological Economics, Elsevier, vol. 185(C).
    20. Naqvi, Asjad & Stockhammer, Engelbert, 2018. "Directed Technological Change in a Post-Keynesian Ecological Macromodel," Ecological Economics, Elsevier, vol. 154(C), pages 168-188.

    More about this item

    Keywords

    Evolutionary economics; Heterodox macroeconomics; Fundamental uncertainty; Path dependency;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:revepe:v:1:y:2020:i:1:d:10.1007_s43253-020-00003-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.