Tag Archives: michal kalecki

Kalecki creeps into the mainstream. First it was Minsky and now Kalecki. Can Marx be far behind? I have always had pleasant interactions with David Andolfatto and he has been open to argument about MMT. He is a careful thinker and wants to be convinced, which is, of course, a good trait. While I think Kalecki's political reasons for the chronic lack of full employment in capital and the recurrent economic downturns that are quite convincing, David Andolfatto is skeptical, since as...

A version of what Lawrence Summers and Anna Stansbury (2019) recently pointed to as “original” Keynesianism can be found in the work of Michał Kalecki and Hyman Minsky, Their work offers analysis of the determination of investment spending and effective demand which avoids the deficiencies found in the New Keynesian economics in which Summers and Stansbury find shortcomings. In the paragraphs below, I describe how their insights and those of other economists sharing their approach provide...

The post is interesting from the POV of history of economics. Antony P. Mueller points out how MMT owes more to Kalecki than to Keynes. His criticism of MMT goes astray in assuming the conventional economic view of debt-financed fiscal deficits crowding out private sector productive investment. MMT shows how this assumption is erroneous in that the net spending after taxes injects the exact amount of bond issuance in offset. It's the spending that funds Treasury security issuance.  In...

Kalecki quote. The Case for Concerted ActionMichal Kalecki On The Effect Of Wages On Employment V. RamananSee also @Brankomilan leads us to this (french) pieceabout Austria. It states that the Austrian government enacted a new law which authorizes working days of 12 hours and working weeks of 60 hours.A). This is a clear case of retrogression. It’s good to read what, in 1921, the International Labor Office stated in its first annual report…. Real-World Economics Review BlogProductivity in...

Banks are not intermediaries between savers and borrowers, and finance is not allocating existing savings to future investment. The opposite is true. Bank credit is self-funding; in credit extension, loans (assets) create deposits (liabilities). In finance as allocation of capital, investment creates saving.Lars P. Syll’s BlogKalecki and Keynes on the loanable funds fallacyLars P. Syll | Professor, Malmo University

Kalecki refutes Say's law, which says essentially that money is a "hot potato" and people spend or invest all of it immediately without intertemporal saving. That is to say against a strict interpretation of Say's law, choice is not anything like immediate in a modern monetary economy, and saving negatively affects consumption of consumer goods and productive investment in capital goods thereby reducing effective demand below full employment. Since private debt is a feature of a modern...