The main objective of the paper is to extend the basic model of Keynes's General Theory to explain medium and long-run economic performance in developed capitalist economies. In this way we seek to deepen our understanding of the macro economic processes that account for differences in macro...

New growth theory endogenizes growth but neglects aggregate demand and distributional shifts in output and employment. A model incorporating demand and structural change is introduced to assess the effects of greater integration of the EC. The analysis shows that the new growth model overstates...