Keynes and Kalecki on Saving and Profit: Some Implications

Abstract

John Maynard Keynes and Michal Kalecki, writing in the 1 930s independently of each other, used the concepts of aggregate consumption and aggregate investment as determinants of aggregate income. Keynes posited a relationship between investment and saving that was startlingly similar to the relationship between investment and profit posited by Kalecki. The nature of this relationship, or these relationships, is the common element, and one that is both original and revolutionary. Because of what I perceive to be a confusion over some of the implications of the Keynes-Kalecki model, most notably the repayment of the debts that finance investment, I explore the model further. The reader will bear with me as I review some no-doubt familiar territory.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 8 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.