Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50880
Authors: 
Hartwig, Jochen
Year of Publication: 
2004
Series/Report no.: 
Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 95
Abstract: 
The conventional wisdom about Keynes's Principle of Effective Demand is that it states something about quantities. It is widely held that the Principle determines the levels of output and employment in a world not governed by Say's Law. This paper argues that the Principle of Effective Demand goes beyond this to explain not only real activity levels but also the aggregate price level. A variant of the Post Keynesian D/Z-model is brought together with Marxian reproduction schemes to derive this result.
Subjects: 
Effective demand
multiplier
Post Keynesianism
D/Z-model
reproduction schemes
JEL: 
B14
B22
E20
E31
Document Type: 
Working Paper

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