New Books in Economics

Marc Lavoie, “Post-Keynesian Economics: New Foundations” (Edward Elgar, 2014)

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Nov 22, 2017
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INSIGHT

Realism Over Abstract Modeling

  • Post‑Keynesian economics is a heterodox school that prioritizes realism and fits theory to observed facts.
  • It rejects abstract ideal worlds and emphasizes methods aligned with real economic institutions and history.
ANECDOTE

Experienced Scholars Still Learn

  • Dany Lang uses Lavoie's book as a primary textbook for his master's classes.
  • He reports discovering new material even as an experienced post‑Keynesian scholar.
INSIGHT

Adaptive Agents, Not Omniscient Optimizers

  • Post‑Keynesians avoid assuming fully optimizing agents with perfect information.
  • They model adaptive behavior and response to disequilibrium rather than omniscient optimization.
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