ABSTRACT
A central feature of Post-Keynesian economics is the importance given to the role of institutions in facilitating economic processes. Post-Keynesian economists have not, as yet, investigated this question to any great extent. One exception to this is the work of Cornwall and Cornwall. In their critique of Neoclassical growth theory and its reliance on the idea of Say’s law, the J. Cornwalls make use of what they refer to as “the reverse Say’s law.” Consistent with the notion of conspicuous consumption, increases in the desired ratio of debt to income in equation can be viewed as merely the attempt of the less well-to-do to keep up with the rich. A central feature of Post-Keynesian economics is the importance given to the role of institutions in facilitating economic processes. Amitava Dutt’s model provides a structure within which to understand the significance of the role played by institutions in maintaining stability in the financial and real sectors of the economy.
