Kalecki's 1934 model VS. the IS-LM model of Hicks (1937) and Modigliani (1944)
Michaël Assous
The European Journal of the History of Economic Thought, 2007, vol. 14, issue 1, 97-118
Abstract:
This article is based on Kalecki's * 1934 study entitled 'Three Systems'. It aims to show that before the General Theory Kalecki developed a mathematical model capable of expressing both the main conclusions of the neoclassical theory - Kalecki's Systems I and II - and the persistence of unemployment - Kalecki's System III. The present analysis stresses the relevance and the originality of Kalecki's 1934 model by comparing it to the two main variants of the IS-LM model - Hicks (1937) and Modigliani (1944) - around which the neoclassical synthesis was built. It shows that although there does indeed exist a formal proximity between Kalecki's model and those of Hicks and Modigliani, Kalecki can be considered the first to offer an original explanation of the difference between classical and Keynesian models that depends neither on liquidity preference as proposed by Hicks nor on the rigidity of money wages as proposed by Modigliani.
Keywords: Kalecki; Say's law; quasi-equilibrium; Modigliani; Hicks; IS-LM; theory of liquidity preference; money wage flexibility (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09672560601168488 (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: https://EconPapers.repec.org/RePEc:taf:eujhet:v:14:y:2007:i:1:p:97-118
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REJH20
DOI: 10.1080/09672560601168488
Access Statistics for this article
The European Journal of the History of Economic Thought is currently edited by José Luís Cardoso
More articles in The European Journal of the History of Economic Thought from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().