The volume of profits in an economy is a magnitude, which is out of sight of orthodox macroeconomic textbooks and effectively ignored by neoclassical macroeconomics. In contrast, Kalecki's approach brings to the forefront the sources of profits and makes possible their further analysis. In a...

From its publication in The Times in 1933, John Maynard Keynes’s investment multiplier sparked much debate and controversy. Can an investment generate 3 or 4 times its value in income within one year? To date, no one has questioned the theoretical merits of this multiplier. Even the biggest...

This paper analyzes the evolution of Keynesianism making use of concepts offered by Imre Lakatos. The Keynesian “hard core” lies in its views regarding the instability of the market economy, its “protective belt” in the policy strategy for macroeconomic stabilization using fiscal policy...

In the introductory chapter a novel economic policy is proposed which consists of a) 'virtualizing' debt (putting it on the Central Bank balance sheet) and b) reduce the money-multiplier by an implementation of a strong minimum reserving policy. The main part shows exposes a flaw in the concept...

We develop an aggregate demand analysis of a small open economy based on all agents' dynamic optimization. Murota and Ono (2015) present a simple Keynesian cross analysis with dynamic optimization. This paper extends it to a small-country setting with two factors and two commodities, of which...