IDEAS home Printed from https://ideas.repec.org/a/elg/rokejn/v8y2020i1p61-83.html
   My bibliography  Save this article

Reviving Keynesianism: the modelling of the financial system makes the difference

Author

Listed:
  • Peter Bofinger

    (Universität Würzburg, Germany)

Abstract

Keynesian economics is not dead. Instead, it is in a similar condition to Sleeping Beauty after she pricked her finger on the spindle. A large hedge of thorns has been laid over the original Keynesian building so that it is hardly recognizable today. Keynesian economics has suffered from a failure to sufficiently identify the core of the Keynesian revolution. This paper argues that the core concerns the distinction between real and monetary exchange economies, and that a proper understanding of money's role requires identifying the mechanisms of the financial system. Doing so reveals the fundamental incompatibility between real and monetary analysis.

Suggested Citation

  • Peter Bofinger, 2020. "Reviving Keynesianism: the modelling of the financial system makes the difference," Review of Keynesian Economics, Edward Elgar Publishing, vol. 8(1), pages 61-83, January.
  • Handle: RePEc:elg:rokejn:v:8:y:2020:i:1:p61-83
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/journals/roke/8-1/roke.2020.01.06.xml
    Download Restriction: Restricted Access
    ---><---

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

    Citations

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


    Cited by:

    1. Bofinger, Peter & Geißendörfer, Lisa & Haas, Thomas & Mayer, Fabian, 2023. "Credit as an instrument for growth: A monetary explanation of the Chinese growth story," W.E.P. - Würzburg Economic Papers 107, University of Würzburg, Department of Economics.
    2. Bofinger, Peter & Geißendörfer, Lisa & Haas, Thomas & Mayer, Fabian, 2021. "Discovering the True Schumpeter - New Insights into the Finance and Growth Nexus," CEPR Discussion Papers 16851, C.E.P.R. Discussion Papers.
    3. Peter Bofinger, 2020. "Sparen und Investieren im Spannungsfeld widerstreitender Paradigmen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(8), pages 577-581, August.
    4. Marc Lavoie, 2020. "Was Hyman Minsky a post-Keynesian economist?," Review of Evolutionary Political Economy, Springer, vol. 1(1), pages 85-101, May.
    5. Bofinger, Peter & Haas, Thomas, 2023. "R-star: A new approach to estimate the polar star of monetary policy," W.E.P. - Würzburg Economic Papers 106, University of Würzburg, Department of Economics.

    More about this item

    Keywords

    Keynesianism; Neoclassical Synthesis;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets 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:elg:rokejn:v:8:y:2020:i:1:p61-83. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Phillip Thompson (email available below). General contact details of provider: http://www.elgaronline.com/roke .

    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.