Post-Keynesian economists fundamentally used ideas from Keynes and his concept of effective demand, Marxist economist Michael Kalecki to provide a critique of neo-classical economics beliefs and an alternative theory of markets. These economists again emphasise uncertainty, real time and actual market conditions. They also revived the classical link between macroeconomic theories of income distribution and economic growth using Keynesian analysis.

They emphasised that the role of financial markets and rejected the quantity theory of money, preferring effective demand as the major influence on income distribution.1

FOUNDATION?@OF?@POST?|KEYNESIAN?@ECONOMIC

In 1930s, Harrod?fs work on growth dynamics was the first development of post-Keynesian economic which distinct from Keynesian analysis. The prevailing theory in economics was static rather than dyn

Aspect Post-Keynesian theory Neo-classical Theory

Finally, Firms may, of course, make mistakes and actual demand may diverge from that expected. Mistakes are generally absorbed by stock exchanges, but that does not mean that subsequent output decisions are influenced by those mistakes and stock changes. This absorbs the shock of misleading.

The first of all, the existence of uncertainty, this is one of the key elements of post-Keynesian analysis. Because of the existence of uncertainty that the future is unknown and unknowable so that economic agents?f expectations can be easily frustrated. Market forces cannot account for the unknowability and unpredictability of the future and so can only disseminate incomplete, even misleading, information. As the future unfolds and become the present Joan Robinson suggests that, continues adjustment must be made. This process proceeds indefinitely without equilibrium ever being achieved, let alone maintained. Thus history matters. 4

STRENGTH IN RELATION TO NEO-CLASSICAL ECONOMIC

?eThe Accumulation of Capital?f by Robinson and ?eReview of Economic studies?f by Kaldor were two key writings, which appeared in 1956. Both explained about the distinction between wages and profits in the work of Kalecki to explain an important aspect of growth dynamics, one inextricably linked to the distribution of income. 2 Such as an increase in the growth rate, because of the higher level of investment that it implied, would necessary be accompanied by a larger share of profits in national income, thus leaving workers relatively worth off. 2

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