THE KALECKIAN ANALYSIS OF DEMAND-LED GROWTH

• Published in: Metroeconomica Vol. 63; no. 1; pp. 7 - 28
• Main Author: Sawyer, Malcolm
• Format: Journal Article
• Language: English
• Published: Oxford, UK Blackwell Publishing Ltd 01-02-2012; Wiley Blackwell
• Series: Metroeconomica
• Subjects: Aggregate demand; Demand; Economic growth; Economic models; Economic theory; Employment level; Growth models; Growth rates; Kalecki, Michal; Labour force; Long-term analysis; Savings and investment; Studies
• ISSN: 0026-1386; 1467-999X
• DOI: 10.1111/j.1467-999X.2011.04127.x

ABSTRACT
A Kaleckian model is outlined to explore how far such a model can be said to provide a demand‐led view of growth. The first issue examined is whether demand‐determined economic activity can be extended into some form of long‐term analysis. The second issue arises from a comparison between the growth rate of the employment and that of the labour force where difference between them leads to rising or falling employment rate. Hence the question arises as to the adaptation of the growth rates, and this is examined in terms of the relationship between the demand side and supply side of the economy.