Varieties of demand and growth regimes – post-Keynesian foundations

Eckhard Hein

European Journal of Economics and Economic Policies: Intervention, 2023, vol. 20, issue 3, 410-443

Abstract: We review post-Keynesian contributions to demand and growth regime analysis. First, for the theoretical model perspective, we distinguish the Kalecki–Steindl approach and the Sraffian supermultiplier approach as relevant theoretical foundations for demand and growth regime research, with investment-driven and distribution-led growth in the focus of the former and autonomous demand-led growth in the latter. Second, for the empirical-historical perspective, we review different ways of analysing the co-existence of demand and growth regimes in the current period of neoliberal and finance-dominated capitalism. We distinguish, first, a basic national income and financial accounting decomposition approach; second, a Sraffian supermultiplier inspired growth decomposition approach; and third, several lenses looking at growth drivers. We argue that these three levels of analysis are, in principle, not mutually exclusive nor even contradictory, but that they rather complement each other. We conclude that, in particular, the PK analysis of growth drivers provides several systematic links with comparative and international political economy approaches, when it comes to the introduction of the political economy dimension (social blocs, growth coalitions, changes in institutions favouring certain types of re-distribution and economic policies, etc.), while the national income and financial accounting, as well as the Sraffian supermultiplier growth accounting decomposition approaches provide the consistent macroeconomic foundations for such synthetic approaches.

Keywords: demand and growth regimes; post-Keynesian economics; Kalecki–Steindl models; Sraffian supermultiplier models; wage-/profit-led regimes; finance-led/finance-burdened regimes; profits without investment regimes; debt-led private demand boom regimes; export-led regimes; domestic demand-led regimes (search for similar items in EconPapers)
JEL-codes: B59 E02 E11 E12 E65 P51 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:20:y:2023:i:3:p410-443

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