Capitalist instability and effective demand (Kalecki’s reason)

As regards the controversy surrounding effective demand and the work ofMichal Kalecki, it must be understood that he not only formulated an adequate theory ofeconomic cycles but, by revealing the limits of this theory, dealt with a more complex set ofproblems which are specific to the movement of ca...

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Bibliographic Details
Author: Braga, José Carlos de Souza
Format: article
Status:Published version
Publication Date:1983
Country:Brasil
Institution:EDITORA 34
Repository:Revista de Economia Política
Language:Portuguese
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1932
Online Access:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1932
Access Level:Open access
Keyword:Economic cycles
Kalecki
effective demand
Ciclos econômicos
Description
Summary:As regards the controversy surrounding effective demand and the work ofMichal Kalecki, it must be understood that he not only formulated an adequate theory ofeconomic cycles but, by revealing the limits of this theory, dealt with a more complex set ofproblems which are specific to the movement of capitalism: the question of the simultaneousdetermination of cycles and trends. To develop this theory entails reformulating the aboveconcepts to grasp the antinomy of the trend in capitalism and its interactions with fluctuationsand changing circumstances. This in turn requires a critique of the concept of economictime, or more precisely a clarification of capitalist temporality. It is also necessary to re-assess the theoretical status of the principle of effective demand, concerning a theory of capitaland capitalist calculation, within a theory of instability; the temporalization of this principle,as effected in macroeconomic models is not sufficient for the comprehension of capitalistdynamics as a whole. JEL Classification: O40; E32; B51.