Keynes, Kalecki and Metzler in a dynamic distribution model.

This paper focuses on the dynamics analysis from the ultra-short to the short period from a Post-Keynesian perspective. It is argued that the construction of both the short-run and the long-run models are based on the critical assumption of an equilibrium between aggregate demand and aggregate suppl...

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Publicado en:Cambridge Journal of Economics Vol. 44; no. 1; pp. 73 - 105
Autor principal: Bibi, Samuele
Formato: Artículo
Publicado: Oxford University Press / USA Jan2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        0309166X
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      dt: Jan2020
      vid: 44
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      pub: Oxford University Press / USA
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        141293658
        10.1093/cje/bez007
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      tig:
        atl: Keynes, Kalecki and Metzler in a dynamic distribution model.
      aug:
        au: Bibi, Samuele
        affil: Trento University and Leeds University
      su:
        Keynes, John Maynard, 1883-1946
        Supply & demand
        Economic statistics
        Aggregate demand
        Dynamic models
        Demand function
      sug:
        subj:
          Supply & demand
          Economic statistics
          Aggregate demand
          Dynamic models
          Demand function
          Keynes, John Maynard, 1883-1946
      keyword:
        Adjustment dynamics
        Disequilibrium
        Kalecki
        Post-Keynesian economics
        Adjustment dynamics
        Disequilibrium
        Kalecki
        Post-Keynesian economics
      ab: This paper focuses on the dynamics analysis from the ultra-short to the short period from a Post-Keynesian perspective. It is argued that the construction of both the short-run and the long-run models are based on the critical assumption of an equilibrium between aggregate demand and aggregate supply. Starting from the work by Metzler (1941. The nature and stability of inventory cycles, The Review of Economic Statistics , 113–29), the issue of equilibrium and stability is investigated inside a Keynesian–Kaleckian perspective. The suggested model analyses under which conditions the standard Kaleckian conclusions are still valid considering a disequilibrium situation. Two scenarios are simulated: one with fixed expectations as in Metzler (1941. The nature and stability of inventory cycles, The Review of Economic Statistics , 113–29) and another based on adaptive expectations and asymmetric behaviour of the wages–unemployment relation. The model questions the effective demand labour curve and suggests that an increase in real autonomous expenditures, mainly by the government, might be even more essential than what is generally considered in the Kaleckian literature, to avoid increasing unemployment a world with increasing wages.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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