ECONOMICS 608: Topics in Economic Theory: The Development of Post-Keynesian Economics


Class Dates: 1/28-29, 2/25-26, 3/25-6, 4/8-9, 4/22-23.

Class Meets Fri 1.00-3.00, Sat 9.00-12.00; Royal Hall 212

Best way to reach Professor Kregel:

Best way to reach Professor Wray:


Grading on the basis of an essay form take home final exam.

COURSE SUMMARY The course will provide an historical and analytical outline of the development of Post Keynesian Economics as the development of three revolutions in economic theory (Effective Demand, Imperfect Competition and Capital Theory) promulgated by economists working in the Cambridge tradition of Marshall and Keynes. It will also assess the influence and contributions from other strands of thought in economics such as Marxian economics and neo-Ricardian economics. The outline below is preliminary, depending on the speed at which we can cover the material. Most of the primary readings will be available online or by photo copy. We will be covering a lot of material and you will not be expected to cover all of the readings B they simply represent the sources for the material that we will be covering in class. Since I have written on some of these subjects these references are also included.



Provisional COURSE OUTLINE (List of topics and suggested background readings)

  1. Introduction

Kregel, "An Essay on Post-Keynesian Theory: A New Paradigm in Economics" (with A.S.Eichner) Journal of Economic Literature, 13, Dec. 1975, pp. 1293-1314.

Kregel, "Post Keynesian Theory: An Overview," Journal of Economic Education, 14:4, Fall, 1983, pp. 32-43.

Kregel, “The Keynesian Revolution” Storia del XX Secolo, Vol. , Roma: Enciclopedia Treccani, 1998.

Kregel, The Reconstruction of Political Economy, London: Macmillan, 1973, second edition, 1975

Harcourt, G. C., and O. Hamouda.  “Post-Keynesianism: from criticism to coherence?” Bulletin of Economic Research 40:1-33, 1988. (Reprinted in Harcourt 1992. On Political Economists and Modern Political Economy: Selected Essays of GC Harcourt. London: Routledge. Edited by Claudio Sardoni.).

Cohen, Avi J. and G. C. Harcourt. 2003. “Whatever happened to the Cambridge Capital Controversies?  Journal of Economic Perspectives 17 (Winter): 199-214.

King, J. E. (2002) A History of Post Keynesian Economics Since 1936, Elgar, Cheltenham.

Davidson, Setting The Record Straight On “A History Of Post Keynesian Economics”, Journal of Post Keynesian Economics, Vol. 26 No. 2.

Marcuzzo, “Joan Robinson and the Three Cambridge Revolutions,” Review of Political Economy, Volume 15, Number 4, October, 2003


  1. Macro -- Keynes’s Treatise, the Circus and the General Theory

Keynes, A Treatise on Money, London: Macmillan, 1930.

Keynes, The General Theory of Employment, Interest and Money, London: Macmillan, 1936.

Kahn, The Making of Keynes' General Theory (Raffaele Mattioli Lectures), Cambridge, 1984.

Kregel, "Effective Demand: Origins and Development of the Notion," in Distribution, Effective Demand, and International Economic Relations, London: Macmillan, 1983, pp. 50-68.

Kregel, "The Theory of Value, Expectations and Chapter 17 of the General Theory," in  A Second Edition of the General Theory, G. C. Harcourt and P. Riach, London: Routledge, 1996, pp. 251-272.

Kregel, "Effective Demand," pp. 99-102, in The New Palgrave: A Dictionary of Economics, London: Macmillan, 1987


  1. Micro-- Marshall, Sraffa, Robinson, Kahn on Prices and Output

Kahn, Fellowship Dissertation: The economics of the short period , London: Macmillan, 1989.

Kahn, Some Aspects of the Development of Keynes' Thought (Part A, B)

Sraffa, "On the Relation Between Costs and Quantity Produced,” in L.L Pasinetti, ed., Italian Economic Papers, volume 3, Bologna: il Mulino/Oxford University Press, 1998, 323-363.

Sraffa, "The Laws of Returns under Competitive Conditions" The Economic Journal, Vol. 36, No. 144. (Dec., 1926), pp. 535-550

Kregel, "Sidney Weintraub's Macrofoundations of Microeconomics and the Theory of Distribution," Journal of Post Keynesian Economics, 7:4, Summer,1985, pp. 540-58.

Kregel, "I fondamenti Marshalliani del principio della domanda effettiva di Keynes," Giornale degli Economisti e Annali di Economia, March-April, 1980

Kregel, "Marshall's 'supply point' as the precursor of Keynes's 'point of effective demand'," mimeograph, 1979.

Kregel, "Walras' auctioneer and Marshall's well-informed dealer: Time, market prices, and normal supply prices," Quaderni di Storia dell'Economia Politica, Vol. X (1992): 531-551.

Kregel, "Savings, Investment and Finance in Kalecki's Theory," in M. Sebastiani, ed., Kalecki's Relevance Today, London: Macmillan, 1989, pp.193-205.

Kregel, "Harrod and Keynes: Increasing returns, the Theory of Employment and Dynamic Economics," in G.C. Harcourt, ed., Keynes and his Contemporaries, London: Macmillan, 1985, pp. 67-88.

(Extra: Discussion of "Harrod and Keynes") 

  1.  The Short Period and the Long Period

Robinson, The Rate of Interest and Other Essays, London: Macmillan, 1952.

Kregel, "The Microfoundations of the 'Generalisation of the General Theory' and 'Bastard Keynesianism': Keynes' Theory of Employment in the Long and the Short Period,"  Cambridge Journal of Economics, 7, Sept.-Dec., 1983, pp. 343- 61.


  1.  Kaldor- Robinson  and the Distribution of Income and Growth Theory

Kregel, The Theory of Economic Growth, London: Macmillan, 1972

Kregel, "Post-Keynesian Theory: Income Distribution," Challenge, Sept.-Oct., 1978, pp. 37-43, reprinted in A Guide to Post Keynesian Economics, A.S. Eichner, ed., White Plains, N.Y.: M.E. Sharpe, 1979

Kregel, "Economic dynamics and the theory of steady growth: An historical essay on Harrod's 'knife-edge'," History of Political Economy, Vol. 12, No. 1 (1980) : 97-123

Robinson, “Harrod After Twenty-one Years”, The Economic Journal, Vol. 80, No. 319., pp. 731-737.

  1.  The Production Function and Money and the Accumulation of Capital

Robinson, The Accumulation of Capital, London: Macmillan, 1956.

  1.  Long-Period Growth, Capital Theory, Hayek and the Production of Commodities

Kregel, The Theory of Capital, London: Macmillan, 1976

Harcourt, Some Cambridge Controversies in the Theory of Capital, Cambridge, 1971.

  1.  The Structure of the Economy and Technical Progress – Ricardo, Pasinetti

Pasinetti, Structural Change and Economic Growth, Cambridge University Press, 1981.


  1. What Happened to Money in the Long-run – the Real World is Horizontal? Or just Unstable?

Davidson, Money and the Real World, London: Macmillan, 1978.

Kregel, "Hamlet Without the Prince: Cambridge Macroeconomics Without Money," American Economic Review, 75, May, 1985, pp. 133-9.  

Kregel, "The Changing Place of Money in Keynes's Theory From the Treatise to the General Theory", Keynesian Theory, Planning Models and Quantitative Economics: Essays in Memory of Vittorio Marrama, Giancarlo Gandolfo and Ferruccio Marzano, eds.,Vol. I, , Milano Giuffre Editore, 1987

Kregel, "Keynes ed il Finance: dal Trattato alla Teoria Generale," in M. Messori, ed., Moneta e Produzione, Torino: Einaudi, 1988, pp. 59-71.

Wray, Money and Credit in Capitalist Economies: The Endogenous Money Approach, Elgar, 1990.

Minsky, John Maynard Keynes, Columbia, 1975.

Moore, Horizontalists and Verticalists The Macroeconmics of Credit Money, Cambridge, 1988.

  1.  Joan Robinson’s Spring Cleaning and Modern Post-Keynesian theory

Robinson, “Spring Cleaning” , published posthumously without permission as “The Theory of Normal Prices and Reconstruction of Economic Theory,” in G. R. Feiwel (ed), Issues in Contemporary Macroeconomics and Distribution, New York: State University of New York Press. 1985.

Kregel, "Of Prodigal Sons and Bastard Progeny," in The Passion of Reason: Joan Robinson (1903-1983), L.L. Pasinetti, A. Roncaglia and M.C. Marcuzzo, eds, London: Routledge, 1996, pp. 53-66.

Marcuzzo, “Robinson and Sraffa

Harris, "Robinson on 'History versus Equilibrium'"