Microfoundations of Keynesian Economics: An Evolutionary Approach to Stabilizing an Unstable Economy (Evolutionary Economics and Social Complexity Science, 37)

This book presents a new vision of Keynesian macroeconomics for readers seeking a rigorous yet intuitive understanding of economic stability and fluctuation.Moving beyond representative-agent models, it develops a monetary production economy in which firms adjust investment through confidence, coordination, and institutional constraints.The economy evolves through a sequence of short-period equilibria and stabilizes within a “corridor” shaped by real anchors, nominal rigidities, and financial structure. Combining evolutionary investment dynamics, fairness-based wage setting, and a 100-percent-reserve monetary framework, the book offers a unified analysis of money, capital accumulation, and expectations.Rather than viewing instability as inherent indeterminacy, it highlights boundary proximity-how repeated encounters with institutional limits generate inflationary and deflationary pressures.The framework reconciles long-run monetary neutrality with persistent Keynesian asymmetries and p