Kazimierz Å aski's Lectures in Macroeconomics under financial capitalism

Jerzy Osiatyński
Additional contact information
Jerzy Osiatyński: Institute of Economics, Polish Academy of Sciences, Warsaw, Poland

European Journal of Economics and Economic Policies: Intervention, 2019, vol. 16, issue 3, 302-317

Abstract: The paper summarizes the discussion among Å aski's inner circle regarding the relevance of Kaleckian treatment of money under financial capitalism. The context of that debate was the project of a joint textbook in macroeconomics, the building blocks of which would be Kalecki's theory, and which would take into account the present-day financialization. With Å aski's death the opportunity of doing the project was gone. Of the two closely interlinked questions under debate, the first dealt with permissible simplifications regarding determinants of money supply and interest rates, and the second with how to extend Kaleckian theory to link the real economy sector more tightly with its financial sector. The paper argues that for an introductory textbook in macroeconomics Kalecki's and Å aski's simplifications are legitimate. On the second issue the paper finds the introduction of two financial subsectors and the discussion of their interlinks with the real economy sector to be an important and possible way of investigating macroeconomic crises and instability within the Kaleckian macroeconomic framework. Another way would be the expansion and modification of Kalecki's investment decision function, which would continue to generate an automatic business cycle due to changes in fixed capital investment but also in combination with factors determining financial investment.

Keywords: Michał Kalecki; Kazimierz Šaski; financial capitalism; business cycle; money and interest (search for similar items in EconPapers)
JEL-codes: E11 E12 E32 E44 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/journals/ejeep/16-3/ejeep.2019.03.02.xml (application/pdf)
Restricted access

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:elg:ejeepi:v:16:y:2019:i:3:p302-317

Access Statistics for this article

European Journal of Economics and Economic Policies: Intervention is currently edited by Torsten Niechoj

More articles in European Journal of Economics and Economic Policies: Intervention from Edward Elgar Publishing
Bibliographic data for series maintained by Phillip Thompson ().