Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64420
Authors: 
Camara-Neto, Alcino F.
Vernengo, Matías
Year of Publication: 
2010
Series/Report no.: 
Working Paper, University of Utah, Department of Economics 2010-07
Abstract: 
This paper analyzes to what extent John Maynard Keynes was successful in showing that the economic system tends to fluctuate around a position of equilibrium below full employment in the long run. It is argued that a successful extension of Keynes's principle of effective demand to the long run requires the understanding of the contributions by Piero Sraffa and Nicholas Kaldor. Sraffa provides the basis for the proper dismissal of the natural rate of interest, while the incorporation by Kaldor of the supermultiplier and Verdoorn's Law allows for a theory of the rate of change of the capacity limit of the economy.
Subjects: 
History of Macroeconomic Thought
Macroeconomic Models
JEL: 
B24
E10
Document Type: 
Working Paper

Files in This Item:
File
Size
126.27 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.