PKT

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

in economics was static rather than dynamic. Harrodsf argued what was needed is a body of theory to explain what caused the observable movement of the economic system to change overtime. The Harrod-Domar formula, in which the growth rate as the dependent variable, is determined by the propensity to save and the incremental capital/output ratio.2
eThe Accumulation of Capitalf by Robinson and eReview of Economic studiesf by Kaldor were two key writings, which appeared in 1956. Both explained about the distinction between wages and profits in the work of Kalecki to explain an important aspect of growth dynamics, one inextricably linked to the distribution of income. 2 Such as an increase in the growth rate, because of the higher level of investment that it implied, would necessary be accompanied by a larger share of profits in national income, thus leaving workers relatively worth off. 2
In the 1960s, when American economy met a crisis which included inflation problem there was ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

Robinson suggests that, continues adjustment must be made. This process proceeds indefinitely without equilibrium ever being achieved, let alone maintained. Thus history matters. 4
Relatively to the first matter, the second characteristic is ethe existence of irreversible timef, where economic agents enter into commitments well before outcomes can be predicted. gHistorical time is sharply distinguished from logical time, which is rejected in post-Keynesian economics. Logical time is closely related to rationality and logical calculus. Problems associated with historical time are consequently assumed away by this mode of thought. Uncertainty is reduced to risk, which can be calculated ...

Succeed in your coursework without stepping into a library. Get access to a growing library of notes, book reports, and research papers in 2 minutes or less.

CITE THIS PAGE: