Theory creation and the methodological foundation of Post Keynesian economics

For the last 15 years there have been extensive discussionsabout the foundations of Post Keynesian economics. From thesediscussions, Post Keynesians have reached the consensus thattheir economics is based on a philosophical foundation of realismand critical realism. However, the methodological foundationof Post Keynesian economics, which refers to the methodologicalguidelines used for creating and developing theory, has receivedrelatively less discussion and development. The aim of thispaper is to stimulate discussion in this area by advocatingthat the method of grounded theory is consistent with criticalrealism and is a better and more developed set of guidelinesfor theory creation than the currently accepted alternatives.