Luigi Pasinetti and the making of classical-Keynesian political economy

Abstract

The paper is made up of two sections. The first contains some preliminary remarks to elaborate a classical-Keynesian system of political economy: closing the gap between Keynes and Sraffa, and the close connections existing between Ricardo, Sraffa and Keynes. The second section starts with a presentation of the social process of production, followed by considering the relationship between this process and the problems of value and distribution. Subsequently, the determination of output and employment in a monetary production economy is dealt with. Finally, the crucial importance of the Pasinetti transformation for linking classical and Keynesian elements of analysis is put to the fore. In the concluding remarks classical-Keynesian political economy is set into a wider context.