The contributions in this book take a critical look at the achievements of macroeconomic theory as represented by monetarists and neoclassical economists. The 'Scandinavian Model' is reintroduced as an alternative, with its emphasis on institutions, market- and power-structure, for understanding macroeconomics, and its relevance is analyzed in the light of European monetary union.

Jesper Jespersen presents a treatise on the importance of the choice of methodology within macroeconomics. Given that no scientifically based macroeconomic policy recommendation should be established without an evaluation of the methods employed, this book gives a clear exposition of how proper macroeconomic analysis should be undertaken. Furthermore, it is convincingly argued that on of the lasting contributions of John Maynard Keynes was his emphasis on methodology; that macroeconomic consequence of uncertainty could not be analysed within the established general equilibrium framework. It is due to post-Keynesian economics supported by critical realism that the understanding of Keynes' methodology has been resurrected, which has eventually resulted in renewed debate on realistic macroeconomic policies to restore full employment without inflation. "Macroeconomic Methodology" is an inquiry into the question of how to conduct a proper scientific analysis of uncertainty within macroeconomics. It will be of great interest to scholars of the philosophy of social sciences and methodology, as well as post-Keynesian and heterodox economists.

Product Description: This is a textbook of macroeconomic theory and politics from a post-Keynesian perspective. The function of the macroeconomic system is explained in a straightforward way. The text is deliberately designed to be simple and pedagogical and is supported by a number of illustrative diagrams...read more