Keynes’s finance, the monetary and demand-led circuits: a Sraffian assessment

Sergio Cesaratto () and Riccardo Pariboni

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: This paper aims to stimulate the convergence of the Sraffian approach to demand-led growth theory with insights from monetary circuit theory and stock-flow models. The first Sraffian contribution to this convergence we identify is the extension of Garegnani’s interpretation of Keynes’ General Theory’s originality and limitations to Keynes’ 1937 papers on “finance.” In both cases, it is a question of freeing Keynes from the ties of marginalist theory. After discussing some troubles of the monetary circuit, we identify a complementarity between the Keynesian concept of finance, some insights of the monetary circuit, and the role attributed by the Sraffian take of demand-led growth to the autonomous components of demand (which are also Kalecki’s external markets). This seems to us to be the second Sraffian contribution to this convergence towards a monetary theory of demand-led growth.

Keywords: Keynes; Finance; Monetary Circuit; Effective Demand; Supermultiplier (search for similar items in EconPapers)
JEL-codes: B26 E12 E43 E50 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-cwa, nep-hme, nep-hpe, nep-mac, nep-mon and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:851

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