Abstract
This book consists of revised versions of Mr Kalecki's earlier works, Essays in the Theory of Economic Fluctuations and Studies in Economic Dynamics, which have been out of print for some time. The original papers have been rewritten and rearranged to lead up to a theory of cyclical fluctuations. Mr Kalecki first discusses the degree of monopoly and then postulates a number of relationships between income, profits, consumption and investment. Following the introduction of each relationship there is a regression analysis of relevant statistical data; but Mr Kalecki emphasises that the statistical analysis is intended to show the plausibility of the relation postulated rather to obtain the most likely value of the coefficients. The separation relationships are later combined in a dynamic model which exhibits cyclical fluctuations. Mr Kalecki favours the Frisch theory of dampened cycles continually excited by erratic shocks rather than the Hicks-Goodwin theory of limits cycles in a non-linear system, and has constructed some series to show that if the magnitude of the stocks are normally distributed fairly regular cycles are generated even when the system is rather heavily dampened. In the concluding chapters of the book a growth trend is added to the cyclical model and there is a brief and very formal treatment of the factors affecting long-run development.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.