Heterodox vs Orthodox economics NON-ORTHODOX PARADIGM HETERODOX PARADIGM POST-CLASSICAL PARADIGM RADICAL POLITICAL ECONOMY REVIVAL OF POLITICAL ECONOMY ORTHODOX PARADIGM DOMINANT PARADIGM THE MAINSTREAM NEOCLASSICAL ECONOMICS

HETERODOX PARADIGM POST KEYNESIANS MONEY, UNCERTAINTY (Fundamentalist Keynesians) KALECKIANS DISTRIBUTION, GROWTH SRAFFIANS PRICES, SURPLUS INSTITUTIONALISTS INSTITUTIONS EVOLUTIONARISTS TECHNICAL CHANGE SOCIAL, HUMANISTIC SOCIO., PSYCHO STRUCTURALISTS DEVELOPMENT MARXISTS MARXIANS DAS KAPITAL RADICALS EXPLOITATION, CYCLES REGULATION, SSA GRAND SCHEMES

Heterodox schools and founders POST KEYNESIANS Weintraub, Davidson,Minsky KALECKIANS Kalecki, Robinson, Kaldor, SRAFFIANS Sraffa, Pasinetti, Garegnani INSTITUTIONALISTS Veblen, Galbraith EVOLUTIONARISTS Schumpeter SOCIAL ECONOMICS Mark Lutz STRUCTURALISTS Lance Taylor MARXISTS MARXIANS RADICALS Sherman, Marglin REGULATION SCHOOL Boyer, Bowles and Weisskopf

Current leaders Post Keynesians: Davidson, Chick Kaleckians: Sawyer, Fazzari,Bhaduri Sraffians: Kurz, Nell Institutionalists: Fred Lee Kaldorians: Godley, Thirlwall, Dutt Ecclectic authors go accross all or at least two of the categories

INFLUENCES ON WYNNE GODLEY CAMBRIDGE Nicholas KALDOR Monetary economics Regional policies Open economy Disequilibrium OXFORD Roy Harrod Foreign trade multiplier OXFORD P.W.S. ANDREWS HALL (& HITCH) Costing, Pricing Wynne GODLEY James TOBIN Porfolio theory Adding-up constraints Stock-flow coherence CAMBRIDGE ECONOMIC POLICY GROUP 1970s GODLEY AND CRIPPS «Macroeconomics» 1982 Augusto GRAZIANI Monetary circuit theory Coutts, Godley, Nordhaus «Industrial pricing» 1978 LEVY INSTITUTE,1990s CERF, 2000s Forecasting SFC models

PRESUPPOSITIONS OF THE TWO OVERALL PARADIGMS HETERODOXY ORTHODOXY Epistemology Realism Instrumentalism Ontology Holism Individualism Rationality Reasonable Hyper Core Production, growth Exchange, scarcity Policy State intervention Free markets

ESSENTIAL POST-KEYNESIAN FEATURES The principle of effective demand Both in the short and in the long run The importance and irreversibility of time Historical time Dynamics, the traverse

AUXILIARY POST-KEYNESIAN FEATURES Fundamental uncertainty A Production monetary economy Alternative microeconomics Possible detrimental effects of price flexibility Pluralism of methods and theories

New Keynesians vs Post-Keynesians There are three kinds of New Keynesians First kind: based on nominal rigidies (Blinder); policies are little different from those of New classicals Second kind: based on asymetric information and real rigidities (Stiglitz): short-run only? Third kind: based on coordination problems, with multiple equilibria and auto-prophetic expectations (Grandmont); closest to pke despite general eq. approach.