Currency in a common research program for post-keynesianism and neo-ricardianism

ABSTRACT An attempt is made to differentiate neoclassical theory from a synthesis of post-keynesianism and neo-ricardianism, called here post-classical theory. The neoclassical research program relies on four essentials: instrumentalism, individualism, exchange, and unbounded rationality. The post-classical program (which also includes institutionalists and radicals) relies on the opposite essentials: realism, organicism, production, and procedural rationality. Monetary theory is given as a case example of these dichotomies. It is shown that post-Keynesians and neo-Ricardians have convergent views on the endogeneity of money and the conventional character of interest rates.