This paper provides a critical appraisal of new growth theory from the perfective of postKeynesian approach to macroeconomic dynamics. It argues that new growth theory appears new from the point of view of introducing endogenous growth only if one ignores many nonneoclassical contributions to old growth theory. New growth theory also suffers from other problems, including the fact that it does ...

Research on economic fluctuations has progressed rapidly since Robert Lucas revived the profession’s interest in business cycle theory. Business cycle theory is the theory of the nature and causes of economic fluctuations The new Classical paradigm tried to account for the existence of cycles in perfectly competitive economies with rational expectations. It emphasized the role of imperfect info...

I n most industrialized economies inflation tends to be pro-cyclical; that is, inflation is high during times of high economic activity. When economic activity is measured by the unemployment rate this statistical relationship is known as the Phillips curve. The Phillips curve is sometimes viewed as a menu for monetary policymakers, that is, they can choose between high inflation and low unempl...