Showing posts with the label post Keynesian economics

Is Time and Choice the Fundamental Components of Economic Development?

Development of financial success rests in part in the psychological functioning of individuals engaged within the market. A paper by Raines and Leathers (2011) helps understand how and why markets have under defined psychological components and how these components influence the economic system. They base their analysis on post-Keynesian economics, group experimental psychology, and the works of John Galbraith. At the very core of economic development may be the concept of choice? Economic markets are not perfectly predictable as history has shown that even some of the best analysis has failed at one time or another. Mathematical explanations alone are not yet sufficient for the overall understanding and prediction of markets. Keynes observed that even though mathematics is helpful many economic choices are made on the micro level based upon alternatives. Sometimes people may rely only on wishful thinking.  If we think of a large economic system we might be surprised that it