ABSTRACT
The terms macrodynamics and macrodynamic theory are used by economists today to designate the area of economics that deals with the development of capitalist economies over time. The aim is to describe and explain both business cycles and economic growth patterns in developed market economies. The evolution of neoclassical macrodynamics since the mid-1950s has been characterized by an increased mathematical sophistication and complexity. In one sense, then, post-Keynesian macrodynamics has been concerned, as has neoclassical macrodynamics, with the nature of long-run equilibrium and its stability. It also seeks to discover whether the actual growth rate of an economy tends to equal what were earlier referred to as the warranted and natural rates of growth. However, as just indicated, this has been viewed as only the beginning of the analysis in post-Keynesian macrodynamics. The central concern has been to explain why growth rates differ and why cyclical fluctuations occur.
