Aggregate demand is important, both in the short and the long run, but a basic distinction must be made between dual and mature economies. Mature economies may su¤er from a structural aggregate problem ("secu- lar stagnation"): full-employment growth may be impossible in the absence of...

This paper examines the dynamics of Keynesian models that incorporate feedback effects from the labor market to income distribution, investment, aggregate demand and output. A baseline version of the model can generate endogenous growth cycles, but cumulative divergence and economic collapse...

Post-Keynesians have questioned the relevance of behavioral economics on methodological grounds, citing the predominant focus of the behavioral literature on possible deviations of individual behavior from extreme standards of perfect optimization. The very limited influence of behavioral...