A Post-Keynesian theory of economic policy – filling a void” by Arne Heise, professor of economics at Hamburg University, 13 pp, March 2008
Arne Heise is a professor of economics at the University of Hamburg. To read “A Post-Keynesian theory of economic policy – filling a void” published in 2008, click on
To sum up: Post Keynesian theory of economic policy emphasizes the need and efficiency of quantitative, interventionist policies, yet does not ignore the limitations to ‘controllability’, i.e. it results in a strong plea for what might be termed ‘constrained feasibility’ between the extremes of Cartesian ‘controllability’ and Hayekian ‘non-decisionism’ – a ‘market participation theory of economic policy’.
And it is this critical knowledge about the limits to policy control on the one hand and the acceptance of a quite different ‘pattern prediction’ as compared to Walrasian and Hayekian economics on the other hand which renders the following critique unfounded: