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At 17:19 23/05/00 -0400, you wrote:
>Andrew, I will have to leave many points unanswered.
>
> > In Kalecki this should have an initial positive impact upon the
> >rate of profit since the total profits increase.
>
>But isnt't there a possibility of a widow's cruse with only a lower real
>wage for workers due to rise of prices consequent upon autonomous increase
>in capitalist consumption? Why do you rule this out?
Answer at two levels
1. the analysis is in terms of monetary quantities in Kalecki's original
essay on the business cycle. He does not express his equations in real terms.
The effect in monetary terms is immediate and short term.
2. He also assumes labour reserves, hence the possibility at any level short
off full employment of the gross output rising in real terms. Thus as a longer
term result, real production of capitalist consumer goods or investment goods
rises in response to higher consumption or investment expenditure by
capitalists.
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