An attempt to integrate Keynes and Kalecki: investment and dynamics

Maria Isabel Busato (), Ana Cristina Reif () and Mario Luiz Possas ()

Brazilian Journal of Political Economy, 2019, vol. 39, issue 3, 509-526

Abstract: Keynes and Kalecki were the forerunners of the models of economic dynamics based on the Principle of Effective Demand (PDE) and assigned central role to investment for understanding dynamics. Kalecki’smodel describes a regular cyclical dynamics - with well-marked standard - associated with dual and lagged investment effect. Keynes’s modelin turn describes a potentially unstable dynamics, a result of the decisions of agents whose expectations are formed under conditions of uncertainty. This article aims to build an integrated interpretation of Keynes and Kalecki’s views, enabling a better understanding of the stylized facts that show that the capitalist dynamic is marked by phases of cyclical regularity that are eventually and suddenly broken, leading to instability. JEL Classification: E12; E11; E22.

Keywords: Dynamics; investment; cycle; instability; principle of effective demand (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... l/article/view/46/41 (application/pdf)

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: https://EconPapers.repec.org/RePEc:ekm:repojs:v:39:y:2019:i:3:p:509-526:id:46

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().