The principle of effective demand: Marx, Kalecki, Keynes and beyond

Eckhard Hein
Institute for International Political Economy Berlin, 2015
Poziom: zaawansowane
Perspektywy: Ekonomia instytucjonalna, Marksistowska ekonomia polityczna, Inne, Postkeynesizm
Temat: odrastanie, macroeconomics, philosophy of economics
Formularz: Working Paper
Link: http://hdl.handle.net/10419/122151

Photo by WeLoveBarcelona.de on Unsplash

Exploring Economics Working Paper Selection

We collect and republish selected Working Papers and Journal Articles on Exploring Economics.

Learn more

The principle of effective demand: Marx, Kalecki, Keynes and beyond

Hein, Eckhard | 2015

 


Abstract: The principle of effective demand, and the claim of its validity for a monetary production economy in the short and in the long run, is the core of heterodox macroeconomics, as currently found in all the different strands of post-Keynesian economics (Fundamentalists, Kaleckians, Sraffians, Kaldorians, Institutionalists) and also in some strands of neo-Marxian economics, particularly in the monopoly capitalism and underconsumptionist school In this contribution, we will therefore outline the foundations of the principle of effective demand and its relationship with the respective notion of a capitalist or a monetary production economy in the works of Marx, Kalecki and Keynes. Then we will deal with heterodox short-run macroeconomics and it will provide a simple short-run model which is built on the principle of effective demand, as well as on distribution conflict between different social groups (or classes): rentiers, managers and workers. Finally, we will move to the long run and we will review the integration of the principle of effective demand into heterodox/post-Keynesian approaches towards distribution and growth.

JEL codes: E20, E21, E22,E24,E25

Key words: effective demand, employment, distribution, growth, Marx, Kalecki, Keynes

Read here

 

 

Stay tuned!

Subscribe to our newsletter to learn about new debates, conferences and writing workshops.

Subscribe!

 

Go to: The principle of effective demand: Marx, Kalecki, Keynes and beyond

This material has been suggested and edited by:

Wesprzyj

Ten projekt został stworzony przez Sieć na rzecz Pluralistycznej Ekonomii (Netzwerk Plurale Ökonomik e.V.).  Jest on zaangażowany w różnorodność i niezależność i jest zależny od darowizn od ludzi takich jak Ty. Regularne lub jednorazowe datki będą bardzo mile widziane.

 

Wesprzyj