Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324476 
Year of Publication: 
2024
Series/Report no.: 
FMM Working Paper No. 111
Publisher: 
Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM), Düsseldorf
Abstract: 
This article presents neo-Kaleckian macroeconomic models that are intended for under-graduate instruction at the introductory and intermediate levels. The neo-Kaleckian approach incorporates markup pricing, monopoly power, and income distribution into a demand-driven macro model for short-run analysis. The model is used to demonstrate the potentially stagnating effects of increased monopoly power and the more expansionary impact of tax cuts on wages compared with profits. This article also shows how a neo-Kaleckian model can be used to analyze the cases in which aggregate demand and the level of output are either 'wage-led' or 'profit-led.' For pedagogical reasons, the models are presented in a way that is parallel to how mainstream Keynesian theory is typically covered in undergraduate macro textbooks.
Subjects: 
Aggregate demand
autonomous spending
multiplier
profit share
wage-led demand
profit-led demand
monopoly capitalism
markup pricing
tax cuts
Michal Kalecki
Josef Steindl
economic stagnation
JEL: 
E11
E12
A22
B22
P10
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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