The aim of this paper is to emphasize several methodological novelties, introduced in the economic analysis by the British economist John Maynard Keynes. This article presents some of the most important concepts that Keynes used, in order to create a new economic theory, capable to offer...

The term 'animal spirits' has returned to academic and public discourse in a way which departs significantly from the original use of the term by Keynes. The new behavioural economics literature uses the term to refer to a range of behaviour which falls outside what is normally understood as...

The recent revival of boom-bust business cycles and the world–wide slow recovery from 2009-2012 has renewed interest in the analysis of a money-production economy developed by Keynes and capital-structure based Austrian macroeconomics developed by Hayek, Mises, Rothbard, and most recently by...

Recently there has been a resurgence in the utility of New Keynesian models in the world. The financial crisis has been in many ways a wakeup call for a large part of economics and the importance of this previously underrated field has been increasing. The neoclassical synthesis of...

This paper presents the goods side/money side (GS/MS) model as a novel way of macroeconomic analysis. The GS/MS model goes beyond Keynesianism as it makes a sharp distinction between the goods side and the money side and thus avoids the indistinctness between real nominal values that come with...

As noted by Alan Greenspan in 2008, one key flaw in standard models is that they treat animal spirits as a simple 'add factor' rather than as a structural one. This paper evaluates the extent to which two recent approaches placing the emphasis on animal spirits - namely Farmer's...

This paper shows that nominal price rigidity can arise from a failure to coordinate price changes. If a firm's desired price is increasing in others' prices, then the gains to the firm from adjusting its price after a nominal shock are greater if others adjust. This "strategic complementarity"...