In Kaleckian models of distribution and growth the equilibrium rate of capacity utilisation may persistently diverge …. Since inflation in our model is driven by distribution conflict, the "normal rate" of utilisation is associated with … consistent claims of firms and employees. Taking into account real debt effects of changes in inflation and distribution effects …

large current account deficit or rise in inflation or interest rates, a rising inflow of external capital, accompanied by … the RBI's sterilizing these inflows and accumulating large reserves, even in the face of low inflation. We offer a …