For the last century, economic analysis has been wedded to the idea of equilibrium, in spite of the evident fact that most economic relationships are in flux. The theory of transformational growth in this work replaces equilibrium with history. The role of the market is not to allocate resources, but to generate innovations, which are 'selected' by competition in an evolutionary process. These innovations in turn change the way markets work and how they adjust, thus creating new problems and new kinds of pressures to innovate. Different historical periods can be distinguished with a new one perhaps on the horizon. In each a distinctive style of technology prevails, associated with corresponding institutions and patterns of market behavior. The core relationships provide the foundations for a theory of monetary circulation, which makes possible a revised Keynesian approach, based on Classical foundations.
• Most sophisticated post-Keynesian/Sraffian treatment of growth to date • Author has written or edited eleven books and has international name recognition • Treatment will especially appeal to UK/European/overseas scholars, where Marxian-style scholarship still has greater theoretical following than in US
Preface; Acknowledgments; Part I. History or Equilibrium?: 1. The idea of transformational growth; 2. The stylized facts of the old business cycle and the new; Part II. Method and Approach: The Active Mind: 3. Conceptual truths and empirical observation; 4. Rationality, structure and behavior; Part III. Money and the Golden Rule: 5. Circulation and production: the need for money Appendix: recent theories of circulation; 6. Circulation and instability: the supply of money; Part IV. The Wage-Profit Trade-Off: 7. The classical system: the Golden Rule, labor, and the wage-profit trade-off; Appendix: a numerical example; 8. The classical system: gravitation and market adjustment; 9. Cycles and growth: market adjustment in craft conditions; Part V. Investment and Mass Production: 10. Demand growth, pricing and investment plans; 11. Inflation, employment, and market adjustment in mass production; Appendix: stability of the modes of operation; Part VI. Money and Fluctuations in the Modern Economy: 12. Money and interest in the Keynesian system; 13. Growth and cycles: financially constrained instability under mass production; Appendix: Stability of modes of operation; Conclusions: 14. Keynesian themes on classical grounds; Bibliography; Index.