Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. International economic policy has been dominated by the “Washington Consensus,” which advocates privatization, free trade, export-led growth, financial capital mobility, deregulated labor markets, and policies of macroeconomic austerity. Second, there is a need to challenge the underlying neoliberal conceptual framework. What does NEO-KEYNESIAN ECONOMICS mean? However, unregulated markets tend to produce bribery. Regarding employment, neoliberals insist that price adjustment ensures an automatic tendency toward full employment. Labor markets are also imperfect. For instance, in the case of wage rigidity, as well as influence from trade unions (which have varying degrees of success), managers may find it difficult to convince workers to take wage cuts on the basis that it will minimize unemployment, as workers may be more concerned about their own economic circumstances than more abstract principles. It quickly becomes clear that post-Keynesianism is not a unified school of thought, but rather an assortment of theoretical approaches that share certain methodological and epistemological similarities and characteristic postulates. In this chapter, we will analyse the contributions of Keynesian, New Keynesian, and post-Keynesian economics in order to verify if they succeed in reaching a better understanding of the origin of crises than their neoclassical counterpart. That is, that economic activity in a capitalist moneta… May 5, 2004. model.” This poses a danger, since the U.S. model is the source of neoliberal policy, including the Washington Consensus. And the antagonism continued after World War II, as illustrated by the conservative-sponsored Taft-Hartley Act (1947), which outlawed the closed shop and secondary strike action, thereby undermining union power and the ability to organize. This suggests that low-unemployment concerns trump fairer income-distribution desires among electorates. First, there is a need to challenge the particulars of neoliberal stabilization policy, which has been suboptimal. With regard to income distribution, neoliberalism asserts that factors of production—labor and capital—get paid what they are worth. Throughout history, there have been two competing perspectives about these questions, which we call Keynesian and Neoclassical economics. In the past two decades, there has been a revival in explanations of price rigidity with the emergence of the "new Keynesian" economists. Expansionary macro policy lowers unemployment, while contractionary macro policy increases unemployment. Neo-Keynesian economics is a school of macroeconomic thought that was initially developed in the post-war period from Keynes ’s seminal book . Likewise, fiscal policy has also been adjusted countercyclically to rectify the business cycle, but it too has been used to favor elites and special political interests. However, in the mid-1970s the Keynesian impulse went into reverse, to be replaced by neoliberalism. Keynesian economic theory, the idea that stimulus can spur aggregate demand, was developed largely as a response to the Great Depression. This was Milton Friedman’s claim regarding the Great Depression, which he argued was caused by mistaken monetary tightening by the Federal Reserve. However, these dislocations only provided an entry point. Within this framework, policy interventions to increase employment either cause inflation or raise unemployment by destabilizing the market process. Peter M. Lichtenstein believes that any social-economic theory of capitalism must begin with a theory of value and price. For the last 25 years, economic policy and the public’s thinking have been dominated by a conservative economic philosophy known as neoliberalism. This is determined by the principle of increasing risk identified by the Polish economist Michał Kalecki. Dismissing the neoclassical school, he turns to post-Keynesian and Marxian economics with their coherent and consistent theories of value and price based on concrete objective circumstances. Classical economic theory presumed that if demand for a commodity or service was raised, then prices would rise correspondingly and companies would increase output to meet public demand. This article takes an in-depth look at post-Keynesianism as a paradigmatic al-ternative to the dominant neoclassical mainstream. post-Keynesian approaches such as the (French) neo-Marxian regulation theory, the (American) Social Structure of Accumulation approach and microeconomic complexity and evolutionary approaches.9 So there also need to be “positive” de-fining characteristics shared by the various schools of post-Keynesian theory. At the macroeconomic level, policy should have an expansionary tilt in order to ensure full employment. The divergent theories regarding the determination of income distribution and the role of downward nominal wage rigidity in creating unemployment created deep internal divisions among Keynesians. 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