Long-Period Perspectives on Unemployment in Kalecki and in Keynes

Mario Sebastiani

Chapter 5 in Kalecki’s Relevance Today, 1989, pp 81-97 from Palgrave Macmillan

Abstract: Abstract It is widely recognised that the theory of effective demand, both in Keynes and in Kalecki, springs from two main propositions — the autonomy of investment from savings and the dependence of the latter from income; it thus follows that the two decisions are reconciled by adjustments of the level of income. This way of approaching the theory of employment does not provide by itself an answer to the question whether unemployment is to be ascribed, after all, to insufficient investments or to an insufficient propensity to consume — that is to say, if the origin of the phenomenon is ‘underinvestment’ or `underconsumption’. The answer to this query can stem only from a comprehensive analysis of the effects of the accumulation of capital over time — that is, from a long-run analysis; from the answer such analysis gives, different lines of employment policy will ensue.

Keywords: Monetary Policy; Private Investment; Public Investment; Capitalist Economy; Full Employment (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-10376-8_5

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DOI: 10.1007/978-1-349-10376-8_5

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