Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31509
Authors: 
Wray, L. Randall
Year of Publication: 
2007
Series/Report no.: 
Working papers // The Levy Economics Institute 488
Abstract: 
In a series of articles and books, Harold Vatter and John Walker attempted to make the case that the American economy suffers from chronically insufficient demand that leads to growth below capacity. Of particular interest are a 1989 Journal of Post Keynesian Economics article that extends Domar's work on the supply side effects of investment spending and a 1997 book that provides a comprehensive analysis of the evolution of the U.S. "mixed" economy. Their analysis of secular growth complements the well-known writings of Hyman Minsky, who also emphasized the role of the "big government" and the "big bank" in stabilizing an unstable economy over the cycle. This article will summarize, provide support for, and extend the Vatter and Walker approach, concluding with an examination of some of the dangers facing the U.S. economy today. As appropriate, the ideas of Minsky will be used to supplement the argument.
Subjects: 
Demand Constraints
Economic Growth
Domar
Vatter and Walker
Sectoral Balances
JEL: 
E0
E6
F4
H6
Document Type: 
Working Paper

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