Wages, Employment and Inflation

Abstract

In the first part of this chapter, we focus attention of Kalecki’s views on the determination of real wages, and the relationship between real wages and employment. A crucial feature of Kalecki’s views on the links between real wages and employment is an emphasis on the positive impact of wages on the level of demand and thereby on employment and the down grading of the conventional concern with the negative impact of a rise in real wages on the demand for labour and thereby on employment. In the second part of this chapter, we examine various aspects of Kalecki’s writings on inflation.