Effective Demand and the Rate of Profits: Some Thoughts on Marx, Kalecki and Sraffa

Ferdinando Vianello

Chapter 10 in Kalecki’s Relevance Today, 1989, pp 164-190 from Palgrave Macmillan

Abstract: Abstract The Marxian twist given by Kalecki to his theory of effective demand by restating it with the help of the ‘schemes of reproduction’1 makes Marx a natural term of comparison for the Polish economist. As a matter of fact, it is Marx himself who uses the ‘schemes of reproduction’ to point out the possibility that the ‘surplus-value produced’ may be not entirely ‘realised’ — namely, that aggregate production may exceed aggregate planned expenditure. The lack of a short-period adjustment mechanism strikes the modern reader, however, as a distinctive feature of Marx’s treatment of the matter vis-à-vis the Keynesian and perhaps even more the Kaleckian theory of effective demand (Section II).2 This difference between Marx and Kalecki appears interviewed with a difference in their views on the rate of profits. It is the latter difference that the present study will try to highlight, disentangling it from the former.

Keywords: Political Economy; General Rate; Productive Capacity; Investment Decision; Real Wage (search for similar items in EconPapers)
Date: 1989
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DOI: 10.1007/978-1-349-10376-8_10

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