This paper examines some features of <italic>The General Theory</italic> that remain relevant 75 years after its publication. Keynes showed that even in a competitive economy with perfectly flexible prices, wages and interest rates, market prices could not guarantee full employment and that the achievement of...

This paper seeks to look at the underlying framework of the New Consensus models, providing a Post-Keynesian critique. In the light of this critique, the model is reformulated, with its basic structure intact, but with alternative post-Keynesian specifications of the Phillips curve being...

During the last decade, developing (and some developed) economies have accumulated large amounts of international reserves, mainly for precautionary reasons. This phenomenon has been coupled with insufficient economic growth. The resources being amassed largely overwhelm protective needs, there...

<italic>This paper develops a macrodynamic model that takes into account the potentially inflationary consequences of interest rate manipulations through the cost channel of monetary transmission. Evaluations of the macroeconomic implications of the cost channel are common in the mainstream literature....</italic>

This paper examines the empirical and theoretical status of the cost-push channel of monetary policy, according to which interest rates affect the costs of production and hence pricing behaviour. Particular attention is paid to modelling the cost-push channel in a manner consistent with...

It has recently been suggested in the pages of this journal that 'functional relations are the alter ego of Humean laws' (Fleetwood, 2001, p. 205). Based on the identification of an open-systems, ceteris-paribus (OSCP) approach to formal modelling, it is argued that this claim is true only some...

A shifting equilibrium model of effective demand is constructed, in which the state of long run expectations is non-constant, and is affected by the disappointment of short-run expectations. It is shown that this model gives rise to cumulative expansions/contractions in nominal income. Changes...

This paper considers the possibility of using fiscal rather than monetary policy as the instrument of stabilization policy in a new consensus framework. Describing the conduct of fiscal policy in terms of a 'pseudo Taylor rule', it is shown that fiscal policy is as, if not more, effective than...

Recent developments in growth theory have encouraged a revisionist interpretation of the field. According to this interpretation long-run growth should be, and always has been, interpreted as a supply-side process. The focus of this symposium is the macro-economics of demand-led growth. As a...

John Cornwall devoted his career to advancing macroeconomics with a view to improving the societies in which we live. We identify three distinct phases in Cornwall's mature scholarship, and analyse the substance of each. The first and second phases, devoted to the analysis of growth and...