When Paul Krugman was (sort of) a Post Keynesian

I thought this was interesting. The other night in our Macro Political Economy class we were going over an open economy Kaleckian model, and one of the papers the professor discussed was one by Paul Krugman and Lance Taylor in 1978, titled "Contractionary Effects of Devaluation". Lance Taylor is an important Post Keynesian, but you don't normally think of Krugman as being one!

I got a chance to take a look at the paper briefly, and had to add "(sort of)" Post Keynesian. The abstract calls it a "Keynesian model", and further down in the paper they give a little more and call it a "Keynes-Kalecki" model. It is Kaleckian insofar as it incorporates differential marginal propensities to consume between wage earners and capital owners, thus showing how income distribution influences the ultimate effect of a devaluation.

Full Kaleckian models, I should note, go a little farther than that and usually assume mark-up pricing behavior and they usually model the underutilization of capital as well (not all that controversial - think of it as an output gap). But the distributional analysis definitely has a Kaleckian flavor to it.