The post-Keynesian "crowding-in" policy meme: Government-Led Semi-Autonomous Demand growth

Brett Fiebinger ()

No 67-2021, FMM Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: A recent literature has explored the role of semi-autonomous demand growth. This paper builds on the literature by incorporating a Lernerian government semi-autonomous demand function and an endogenous supply-side. Our main purpose is threefold. First, we wish to contribute to the case for crowding-in effects, especially in the long-run. Second, we confirm the Keynesian/Kaleckian pedigree of the capital stock adjustment principle. Third, we contrast core post-Keynesian ideas on demand-led supply-side endogeneity with the alternative neo-Marxian neo-Harrodian proposition of an exogenously-given natural growth rate, and find the latter lacking.

Keywords: Fiscal policy; Crowding-in; Semi-autonomous demand; Capital stock adjustment principle (search for similar items in EconPapers)
JEL-codes: B22 B50 E11 E20 E60 O42 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2021
New Economics Papers: this item is included in nep-ban, nep-cwa, nep-hme, nep-mac and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:imk:fmmpap:67-2021

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