ECONOMIC POLICY IN A GROWTH CONTEXT: A CLASSICAL SYNTHESIS OF KEYNES AND HARROD

Anwar Shaikh ()

Metroeconomica, 2009, vol. 60, issue 3, pages 455-494

Abstract: This paper clarifies key differences between Harrodian and Keynesian theories and policies, and develops a classical alternative to both. The stability of the Harrodian warranted path is proved, and the Keynesian paradox of thrift is shown to be transient. Distinct Harrodian fiscal policies are derived, and Post-Keynesian debates about Harrodian dynamics are addressed. Finally, it is argued that business and household savings are fundamentally different, and it is shown that if the business savings rate responds at all to the investment-savings gap, it becomes possible to have both profit-driven accumulation as in Keynes and normal capacity growth as in Harrod. Copyright © 2008 The Author. Journal compilation © 2008 Blackwell Publishing Ltd.

Date: 2009
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2009&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:metroe:v:60:y:2009:i:3:p:455-494

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0026-1386

Access Statistics for this article

Metroeconomica is edited by Heinz D. Kurz and Neri Salvadori

More articles in Metroeconomica from Blackwell Publishing
Series data maintained by Christopher F. Baum ().