The Post Keynesians and Douglas North about Uncertainty and Institutions: the Missing Link?
The paper compares the Post Keynesian and North’s approaches to an analysis of uncertainty and uncertainty-reducing role of institutions. Author emphasizes that Post Keynesianism was the first school of economic thought that has made uncertainty the starting point of own research program. Many of No...
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| Format: | Article |
| Language: | English |
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Ltd. "Humanities Perspectives"
2016-09-01
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| Series: | Журнал институциональных исследований |
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| Online Access: | http://hjournal.ru/files/JIS_8_3/JIS_8.3_2.pdf |
| Summary: | The paper compares the Post Keynesian and North’s approaches to an analysis of uncertainty and uncertainty-reducing role of institutions. Author emphasizes that Post Keynesianism was the first school of economic thought that has made uncertainty the starting point of own research program. Many of North’s line of reasoning about uncertainty were mentioned by the Post Keynesians long before his works had been published. It is not fortuitous that in the course of discussion of ergodicity and non-ergodicity North cites Davidson, leader of Post Keynesianism. Both approaches conclude that Neoclassical theory cannot be applicable to the solution of the real world’s problem because it ignores “genuine” (fundamental) uncertainty. The paper considers also differences between these two approaches. Whereas North’s theory explains inability of many systems to grow steadily, the Post Keynesians emphasize problems of systems perceived as successful. These problems exist due the fact that institutional evolution decreases effectiveness of uncertainty’s reduction and are revealed in macroeconomic and financial crises. |
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| ISSN: | 2076-6297 2412-6039 |