Power and conflict play virtually no role in mainstream economics, the main reason being the pervasive influence of the competitive model and the difficulty in incorporating quantitavely in formal models. Following some preliminary remarks on power, we proceed to an historical explanation of the shifts of power and their impact on institutions, i.e., the rules, laws and customs that govern behaviour, and on economic performance. The paper concludes with an evaluation of Kalecki's and Keynes' views and the outlook in the near future for globalization, the distribution of power and full employment.
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