Growth and Sustainability in Post-Keynesian Perspective: Some Notes

The most serious challenge to mankind has not yet been addressed properly by post-Keynesianism: the over-stretching of our planetary boundaries encompassing resource depletion and environmental damage like climate change challenging traditional views assuming endless environmental absorption capacity. Mainstream economics argues capitalism and sustainable development are compatible, as market forces can decouple growth from resource use and pollution. Post-Keynesian perspectives in contrast highlight a demand-led growth path involving a trade-off between ecological, economic and social sustainability. Mitigating this trade-off demands substantial redistributive actions and Keynesian-type demand management focused on green spending and structural changes.