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The illusions of the "new consensus" in macroeconomics: a Minskian analysis


  • Giorgos Argitis


The present crisis raises some crucial questions about the foundations of the currently hegemonic model of conventional macroeconomics. This paper argues, from a Minskian viewpoint, that the "new consensus" in macroeconomics cannot be the basis for fruitful research on the behavior of the financial model of capitalism in which we live and for drawing useful economic policies to stabilize it. It shows that the most important problem is the relegation of key institutions, which entrap the economic profession and the policymakers into a self-regulated financial markets illusion and a fine-tune illusion. Macroeconomic research urgently needs to escape from conventional beliefs and preconceptions that minimize the realism of macroeconomic theory and policy.

Suggested Citation

  • Giorgos Argitis, 2013. "The illusions of the "new consensus" in macroeconomics: a Minskian analysis," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 35(3), pages 483-505.
  • Handle: RePEc:mes:postke:v:35:y:2013:i:3:p:483-505
    DOI: 10.2753/PKE0160-3477350309

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    References listed on IDEAS

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    5. Rogério Studart, 2006. "Integrating Uneven Partners: The Destabilizing Effects of Financial Liberalization and Internationalization of Latin American Economics," Chapters,in: Monetary Integration and Dollarization, chapter 9 Edward Elgar Publishing.
    6. John T. Harvey, 1991. "A Post Keynesian View of Exchange Rate Determination," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(1), pages 61-71, September.
    7. Runde, Jochen, 1990. "Keynesian Uncertainty and the Weight of Arguments," Economics and Philosophy, Cambridge University Press, vol. 6(02), pages 275-292, October.
    8. David Dequech, 2000. "Fundamental Uncertainty and Ambiguity," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 41-60, Winter.
    9. Tony Lawson, 1988. "Probability and Uncertainty in Economic Analysis," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(1), pages 38-65, September.
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