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74-731: As with many uses of the prefix neo- , some theorists and groups who are designated as neo-Marxists have attempted to supplement the perceived deficiencies of orthodox Marxism or dialectical materialism . Many prominent neo-Marxists, such as Herbert Marcuse and other members of the Frankfurt School , have historically been sociologists and psychologists . Examples of neo-Marxism include analytical Marxism , French structural Marxism , political Marxism , critical theory , cultural studies , as well as some forms of feminism . Erik Olin Wright 's theory of contradictory class locations

148-471: A Rockefeller Foundation 's Traveling Fellowship, proceeded to work abroad. Had he not received the fellowship, the war would have caught Kalecki in Poland and, given his Jewish origins, he would probably not have survived. The scholarship enabled Kalecki to travel with his wife to Sweden , where followers of Knut Wicksell were trying to formalize a theory similar to Kalecki's. In Sweden in 1936 he learnt of

222-495: A " leftist Keynesian ". According to Toporowski, Kalecki's monetary theory is of particular significance. Unlike Keynes, Kalecki regarded credit as a fundamental system of financial reckoning in capitalist economy, not just as clearing of payments between commercial banks and a central bank . He saw monetary policy as endogenous to the business cycle, dependent on business investment rather than on interest rate and credit policy of central bankers. Unlike Keynes, who followed

296-410: A distinct tradition of economic theory in the 1970s and 1980s that stems from Marxian economic thought . Many of the leading figures were associated with the leftist Monthly Review School. The neo-Marxist approach to development economics is connected with dependency and world systems theories. In these cases, the ' exploitation ' that classifies it as Marxist is an external one, rather than

370-561: A high salary, but was offended at being discriminated against on account of his immigrant status. One reason he was not appointed to a more senior position was that he had not applied to become a British subject. Kalecki went to París for a while, then moved to Montreal , where he stayed for fifteen months working at the International Labour Office . In July 1946 he accepted the Polish government's invitation to head

444-539: A large following and was supported especially by his friend Joan Robinson . In 1955 Kalecki returned to Poland, never to work abroad for any extended period again. Hopeful for an opportunity to participate there in reforms that were socially advantageous , he believed that socialism would avoid the miseries brought by capitalist policies. He became economic advisor to the Office of the Council of Ministers. In 1957, he

518-502: A more assertive working class and weakening of the social position of business leaders, causing the elite to react to the erosion of their political power and force a displacement of that policy , in spite of profits being higher than under a laissez-faire system. Kalecki was hired by the Oxford Institute of Statistics (OIS) early in 1940. His job there consisted mainly of writing statistical and economic analysis for

592-476: A practical character and were concerned with establishing relationships between macro-magnitudes. The first article that anticipated many subsequent contributions was published in 1932 in Przegląd socjalistyczny ('The Socialist Review') magazine, under the pseudonym Henryk Braun. The article dealt with the impact of wage cuts during an economic downturn. In 1933 Kalecki wrote Próba teorii koniunktury ('An Attempt at

666-526: A sense his subsequent publications would consist of mere elaborations on the ideas propounded here. While Kalecki was generally enthusiastic about the Keynesian Revolution, in his article Political Aspects of Full Employment , which Anatole Kaletsky called one of the most prescient economic papers ever published, he predicted it would not endure. Kalecki believed that the full employment delivered by Keynesian policy would eventually lead to

740-627: A system that contains everything of importance in the Keynesian system, in addition to other contributions". In an introduction to the essay's 1966 English translation, Joan Robinson wrote: "Its sharp and concentrated statement provides a better introduction to the general theory of employment, interest and money than any that has yet been produced." Except for a small number of economists (in particular econometricians ) familiar with his work, Kalecki's contributions, originally in Polish, failed to gain recognition. In October 1933 he read his essay to

814-447: Is an example of the syncretism found in neo-Marxist thought, as it incorporates Weberian sociology, and critical criminology . There is some ambiguity surrounding the difference between neo-Marxism and post-Marxism , with many thinkers being considered both. Prominent neo-Marxist journals include Spectre, Historical Materialism , New Left Review , Rethinking Marxism , Capital & Class , Salvage, Cultural Logic and

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888-423: Is an integral part of the normal capitalist system.' The capitalists therefore want to limit government intervention and spending as disruptions to laissez-faire that reduce their "state of confidence" in the overall economic performance, with the notable exception of armament spending and policies that lead to increased armament spending (the last point Kalecki emphasized again in 1967). The economics of Kalecki

962-476: Is determined by a combination of many factors difficult to explain, which are considered given, exogenous . Regarding capitalists' consumption, he considers that a simplified form is the following equation: That is, capitalists' consumption depends on a fixed part (independent part), the term A   {\displaystyle A\,\ } , and a proportional share of profits, the term q   {\displaystyle q\,\ } , which

1036-401: Is his profit equation. Kalecki, whose early influences came from Marxian economists, thought that the volume of profits and their sharing in a capitalist society were vital points to be treated. This followed from Karl Marx 's work on relationships such as the rate of surplus value or the organic composition of capital (and even a forecast about the overall trend of profits). However, Marx

1110-456: Is largely irrational since though individuals may make rational decisions, the ultimate systemic goals are not. The system continues to function so long as Keynesian full employment policies are pursued, but there is the continued threat to stability from less-developed countries throwing off the restraints of neo-colonial domination. Paul A. Baran introduced the concept of potential economic surplus to deal with novel complexities raised by

1184-453: Is the gross investment that has been made in the economy. Since we have supposed workers who do not save (that is W = C W   {\displaystyle W=C_{W}\,\ } in the preceding equation), we can simplify the two terms and arrive at: This is the famous profits equation, which says that profits are equal to the sum of investment and capitalists' consumption. At this point, Kalecki goes on to determine

1258-422: Is the volume of gross profits (profits plus depreciation ), W   {\displaystyle W\,\ } is the volume of total wages, C P   {\displaystyle C_{P}\,\ } is capitalists' consumption, C W   {\displaystyle C_{W}\,\ } is workers' consumption and I   {\displaystyle I\,\ }

1332-615: The Seminar in Contemporary Marxism . Neo-Marxism developed as a result of social and political problems that traditional Marxist theory was unable to sufficiently address. Following World War I , some neo-Marxists dissented and later formed the Frankfurt School . The Frankfurt School never identified themselves as neo-Marxists. Toward the end of the 20th century, neo-Marxism and other Marxist theories became anathema in democratic and capitalistic Western cultures, where

1406-516: The article wizard to submit a draft for review, or request a new article . Search for " Neo- " in existing articles. Look for pages within Misplaced Pages that link to this title . Other reasons this message may be displayed: If a page was recently created here, it may not be visible yet because of a delay in updating the database; wait a few minutes or try the purge function . Titles on Misplaced Pages are case sensitive except for

1480-428: The neo-Marxian ( Monopoly Capital ) and post-Keynesian schools of economic thought. He was one of the first macroeconomists to apply mathematical models and statistical data to economic questions. Being also a political economist and a person of left-wing convictions, Kalecki emphasized the social aspects and consequences of economic policies. Kalecki made major theoretical and practical contributions in

1554-548: The partial equilibrium approach, for Kalecki economic dynamics was synonymous with the business cycle, where "the circular flow of income generates cumulative changes from one period to the next". Kalecki and Lange stressed the necessity of analysis of actually-functioning capitalism in both the advanced and developing countries, before economic theories could be built or courses of action prescribed. Kalecki's studies of capitalist enterprises included their finances, investment patterns and factors that influence investment, such as

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1628-400: The political economy of the 19th century, when the idea that prices integrate exchange decisions gained ground, but was revived by Joseph Schumpeter , who pointed out the necessity of considering the circular flow of income (recognition of the economic cycle ) as an integrating factor in order to gain a comprehensive understanding of the total economic process in a given period. The principle

1702-538: The British government of the management of war economy . Occasionally he gave lectures at Oxford University . The elaborate reports Kalecki prepared for the government were chiefly about the rationing of goods, and the scheme he developed was very close to the policies adopted later when rationing was introduced. According to George Feiwel, "Kalecki's work of the war period is far less known than it deserves to be". Several of Kalecki's wartime articles were devoted to

1776-806: The Central Planning Office of the Ministry of Economics, but he left some months later. By the end of 1946, he assumed the job of Deputy Director in the Department of Economic Affairs of the United Nations Secretariat in New York . He remained there until 1955, mainly preparing the World Economic Reports. Kalecki resigned that position as a result of McCarthyist pressures. It was argued that he

1850-536: The Department of Economic Problems in Developing Countries, operated jointly by Warsaw University and the School of Planning and Statistics. When the 1968 Polish political crisis unfolded, Kalecki retired in protest against the wave of antisemitic dismissals and firings that affected many of his colleagues. He also devoted this period to the study of mathematics . In part this was a continuation of

1924-510: The Institute of Research on Business Cycles and Prices ( Instytut Badania Koniunktur Gospodarczych i Cen ) in Warsaw and obtained a job there because of his ability to use statistics . He stayed there for seven years. On 18 June 1930, Kalecki married Ada Szternfeld. At the Institute he met Ludwik Landau , whose knowledge of statistics influenced Kalecki's work. His first publications were of

1998-653: The International Econometrics Association in Leiden and in 1935 published it in two major journals: Revue d'Economie Politique and Econometrica . Readers of neither journal were particularly impressed, but the article received favourable comments from such leading economists as Ragnar Frisch and Jan Tinbergen . In 1936 Kalecki protested the politically motivated actions taken by the Institute of Research against his colleagues, including Landau. Kalecki resigned, and having been granted

2072-704: The Theory of the Business Cycle'), an essay that brought together many of the issues that dominated his thought for the rest of his life. In the essay Kalecki for the first time developed a comprehensive theory of business cycles . The foundations of his macroeconomic theory of effective demand presented in the paper anticipated similar ideas published three years later by John Maynard Keynes in The General Theory of Employment, Interest and Money . According to Lawrence Klein (1951), Kalecki "created

2146-531: The areas of the business cycle , economic growth , full employment , income distribution , the political boom cycle, the oligopolistic economy, and risk . Among his other significant interests were monetary issues, economic development , finance , interest , and inflation . In 1970, Kalecki was nominated for the Nobel Memorial Prize in Economics but died the same year. Michał Kalecki

2220-516: The assumptions of the original equation: the economy can be open, there may be a government sector and we can let workers save something. The resulting equation is: In this model total profits (net taxes this time) are the sum of capitalists' consumption, investment, public deficit, net external surplus ( exports minus imports ) minus workers' savings. Before trying to explain income distribution, Kalecki introduces some behavioural assumptions in his simplified equation of profits. For him, investment

2294-483: The authors concerned, it is not particularly interesting to know who first got into print. The interesting thing is that two thinkers, from completely different political and intellectual starting points, should come to the same conclusion. For us in Cambridge it was a great comfort." Later Kalecki always acknowledged that the " Keynesian Revolution " was an appropriate name for the movement in economics, as he realized

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2368-418: The causal link between the two sides of the equation: does capitalists' consumption and investment determine profits or profits instead determine capitalists' consumption and investment? Kalecki says, "The answer to this question depends on which of these items is directly subject to the decisions of capitalists. Now, it is clear that capitalists may decide to consume and to invest more in a given period than in

2442-416: The concept of planned surplus—a category that could only be operationalized in a rationally planned socialist society. This was defined as "the difference between society's 'optimum' output available in a historically given natural and technological environment under conditions of planned 'optimal' utilization of all available productive resources, and some chosen 'optimal' volume of consumption." Baran used

2516-426: The crucial and empirically demonstrable role of the government sector , the state's intervention and the interaction between the state and private sectors. In 1943 Kalecki wrote: '... "discipline in the factories" and "political stability" are more appreciated by the business leaders than are profits. Their class instinct tells them that lasting full employment is unsound from their point of view and that unemployment

2590-453: The development of financial markets , microeconomic conditions, and governmental fiscal interventions . The volume of economic literature written by Kalecki during his life was very large. Although in most of his articles he returned to the same subjects (business cycles, determinants of investment, socialist planning ), he often did it from a slightly unusual perspective and with original contributions. Kalecki's most famous contribution

2664-489: The dominance of monopoly capital , in particular the theoretical prediction that monopoly capitalism would be associated with low capacity utilization, and hence potential surplus would typically be much larger than the realized surplus. With Paul Sweezy , Baran elaborated the importance of this innovation, its consistency with Marx's labor concept of value and supplementary relation to Marx's category of surplus value . According to Baran's categories: Baran also introduced

2738-461: The economy, because the workers do not save. The previous causal relationship still applies, and goes from investment to saving. That is to say, total savings are determined once investment has been determined. Therefore, in some way, investment generates sufficient resources. "Investment finances itself", so that equality between savings and investment is not caused by any interest rate mechanism as earlier economists thought. Finally, we can eliminate

2812-458: The first character; please check alternative capitalizations and consider adding a redirect here to the correct title. If the page has been deleted, check the deletion log , and see Why was the page I created deleted? Retrieved from " https://en.wikipedia.org/wiki/Neo- " Micha%C5%82 Kalecki Heterodox Michał Kalecki ( Polish pronunciation: [ˈmixaw kaˈlɛt͡skʲi] ; 22 June 1899 – 18 April 1970)

2886-538: The growth rate were disregarded under the spell of optimism engendered by the good performance in 1956–57. Although Kalecki remained with the Commission of the Perspective Plan for another year beyond 1959, all concerned knew that it was a pro forma function. The end of 1958 had marked the beginning of the erosion of his influence." Still holding some of his government appointments, Kalecki spent much of

2960-410: The idea of political business cycle (governments can force situations to their advantage) seems to point in the opposite direction. As he grew older, Kalecki was ever more convinced of this, and his view of humanity was getting increasingly pessimistic. Michał Kalecki died on 18 April 1970 at the age of 70, and although he was bitterly disappointed with political developments, he lived long enough to see

3034-433: The importance of Keynes's established position, the recognition Keynes enjoyed and his decisive role in the promotion and causing eventual acceptance of the ideas that Kalecki pioneered. In 1939 Kalecki wrote one of his most important works, Essays in the Theory of Economic Fluctuations . Although his conception changed through the years, all the essential elements of Kaleckian economics were already present in this work: in

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3108-432: The individual entrepreneur, is not true for the business class as a whole, as the consumption of one capitalist becomes part of the profits of another. In a way, "they are masters of their fate". If in the preceding equation we move capitalists' consumption to the left, the equation becomes: since profits minus capitalists' consumption are the total saving ( S   {\displaystyle S\,\ } ) in

3182-406: The interest he had when he was young and generalized Pascal's theorem. His investigations now centered on number theory and probability . Kalecki's engagement in mathematics helped him to relieve the extreme disappointment caused by the lack of power to help his country in economic policy . Kalecki kept writing research articles. During his last visit to Cambridge in 1969, his seventieth birthday

3256-449: The last thirteen years of his career. He was contemptuous of abstract research and declined Keynes's invitation to undertake a critique of Jan Tinbergen 's econometric business cycle work, for which he would also lack an in-depth knowledge of statistical theory . Kalecki stressed that the predominant economic growth models were built on the assumption of an idealized laissez-faire capitalism and did not properly take into account

3330-514: The magnitude of investment by business enterprises (the crucial "driver of the business cycle"), not by price and wage flexibility. Savings are determined by investments, not the other way around. Contrary to the Ricardian and Neoclassical economics, Kalecki asserted that higher wages lead to fuller employment. His monetary theory was rooted in the business cycle theory of Knut Wicksell . Quesnay's circular flow of income fell into disrepute in

3404-455: The means of political and cultural change. Teresa McDowell and Rhea Almeida use these theories in a therapy method called "liberation based healing", which, like many other forms of Marxism, uses sample bias in the many interrelated liberties in order to magnify the " critical consciousness " of the participants towards unrest of the status quo. The terms "neo-Marxian", "post-Marxian", and "radical political economics" were first used to refer to

3478-411: The military he joined Gdańsk Polytechnic , where he stayed until 1923, but because of the family financial situation had to leave the institution just before graduating. During these years he first approached economics, although informally. He read mostly "unorthodox" works, particularly those of Mikhail Tugan-Baranovsky and Rosa Luxemburg . Years later they influenced some of his writings related to

3552-482: The most distinguished economists of the 20th century" and "likely the most original one". It is often claimed that he developed many of the same ideas as John Maynard Keynes before Keynes but remains much less known to the English-speaking world. He offered a synthesis that integrated class analysis of Marxism and the new literature on oligopoly theory , and his work had a significant influence on both

3626-435: The normal 'internal' exploitation of classical Marxism . In industrial economics , the neo-Marxian approach stresses the monopolistic and oligarchical rather than the competitive nature of capitalism . This approach is associated with Michał Kalecki , Paul A. Baran , and Paul Sweezy . Such theorists as Samuel Bowles , David Gordon , John Roemer , Herbert Gintis , Jon Elster , and Adam Przeworski have adopted

3700-620: The potential growth of a capitalist system. Having to enter the job market full-time, Kalecki abandoned his formal studies for good. His first job was to collect data on companies seeking credit. In this same period he tried unsuccessfully to start a newspaper, but instead ended up writing articles for two existing periodicals, Polska gospodarcza ('Economic Poland') and Przegląd gospodarczy ('The Economic Review'). Probably when writing these articles he began to acquire skills in obtaining and analyzing empirical information, which he later used in his professional works. In 1929 Kalecki applied for work at

3774-437: The preceding one, but they cannot decide to earn more. It is, therefore, their investment and consumption decisions which determine profits, and not vice versa". For someone who has not seen the preceding relationship before, it might, upon examination, seem somewhat paradoxical. If the capitalists consume more, obviously the amount of funds which they have at the end of the year should be less. However, this reasoning, obvious to

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3848-635: The publication of Keynes's General Theory . Kalecki was working on a comprehensive elaboration of the economic ideas he had previously developed, but having found in Keynes's book much of what he was going to say, he interrupted his work and traveled to England . He first visited the London School of Economics and afterward went to Cambridge . Thus began his friendships with Richard Kahn , Joan Robinson and Piero Sraffa , which left an indelible mark on all of them. In 1937 Kalecki met Keynes. The meeting

3922-613: The recognition of the value of his many original contributions to economics. Feiwel wrote the following summary of Kalecki's life: "With Michal Kalecki's death, the world lost a unique individual of extremely high principles, powerful energy, and brilliant mind, and economics lost a model and inspiration. His legacy, however, cannot be erased. ... He demanded perfection, or at least an unalloyed commitment to that goal, he could not tolerate slovenly thought or superficial minds, and, most significant, he simply would not compromise his principles. Looking back over his troubled years, Kalecki once made

3996-611: The rest of his professional life in teaching and research, as a university professor from 1956 ( Central School of Planning and Statistics and the University of Warsaw ) and member of the Polish Academy of Sciences from 1957. In 1959, he began directing a seminar on socioeconomic problems of the Third World , along with Oskar R. Lange and Czesław Bobrowski . He was instrumental in the establishment and functioning of

4070-544: The sad but true observation that the story of his life could be compressed into a series of resignations in protest-against tyranny, prejudice, and oppression." Despite the fact that Kalecki authored many theoretical economic constructs, his interest in economics was more practical than academic and resulted from his work in engineering, journalism, credit investigation, use of statistics and observation of business operations. Full-time university teaching, for which he did not have formal qualifications (a degree), he did only during

4144-519: The study of Imperialism . Big business can maintain selling prices at high levels while still competing to cut costs, advertise and market their products. However, competition is generally limited with a few large capital formations sharing various markets, with the exception of a few actual monopolies (such as the Bell System at the time). The economic surpluses that result cannot be absorbed through consumers spending more. The concentration of

4218-475: The subject of inflation . He argued, on economic grounds, against the government's efforts to suppress inflation by official regulation of prices and by government wage stabilization (freezing of wages), recommending in each case economic rationing instead (especially the full rationing system rather than the wage stabilization program). Some of Kalecki's major works were written during this period. In 1943 he produced two articles, one dealing with new additions to

4292-1087: The surplus concept to analyze underdeveloped economies (or what are now more optimistically called "developing economies") in his Political Economy of Growth . neo-#English Look for Neo- on one of Misplaced Pages's sister projects : [REDACTED] Wiktionary (dictionary) [REDACTED] Wikibooks (textbooks) [REDACTED] Wikiquote (quotations) [REDACTED] Wikisource (library) [REDACTED] Wikiversity (learning resources) [REDACTED] Commons (media) [REDACTED] Wikivoyage (travel guide) [REDACTED] Wikinews (news source) [REDACTED] Wikidata (linked database) [REDACTED] Wikispecies (species directory) Misplaced Pages does not have an article with this exact name. Please search for Neo- in Misplaced Pages to check for alternative titles or spellings. You need to log in or create an account and be autoconfirmed to create new articles. Alternatively, you can use

4366-456: The surplus in the hands of the business elite must therefore be geared towards imperialistic and militaristic government tendencies, which is the easiest and surest way to utilise surplus productive capacity . Exploitation focuses on low wage workers and groups at home, especially minorities. Average earners see the pressures in drive for production destroy their human relationships, leading to wider alienation and hostility. The whole system

4440-776: The techniques of neoclassical economics , including game theory and mathematical modeling, to demonstrate Marxian concepts such as exploitation and class conflict . The neo-Marxian approach integrated non-Marxist or "bourgeois" economics from the post-Keynesians like Joan Robinson and the neo-Ricardian school of Piero Sraffa . Polish economists Michał Kalecki , Rosa Luxemburg , Henryk Grossman , Adam Przeworski , and Oskar Lange were influential in this school, particularly in developing theories of underconsumption . While most official communist parties denounced neo-Marxian theories as "bourgeois economics", some neo-Marxians served as advisers to socialist or Third World developing governments. Neo-marxist theories were also influential in

4514-566: The term attained negative connotations during the Red Scare . For this reason, social theorists of the same ideology since that time have tended to disassociate themselves from the term neo-Marxism. Some portions of Marxist feminism have used the neo-Marxist label. This school of thought believes that the means of knowledge, culture, and pedagogy are part of a privileged epistemology . Neo-Marxist feminism relies heavily on critical theory and seeks to apply those theories in psychotherapy as

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4588-536: The traditional business cycle theory, and one presenting his completely original theory of business cycles caused by political events. The latter was published in 1944 and was based on the premise of full employment. It was a compilation of studies by Kalecki and his colleagues at the OIS, who were strongly influenced by Kalecki'. In 1945 Kalecki left the OIS because he felt his talents were insufficiently appreciated. He displayed great modesty about his work and did not expect

4662-597: Was a Polish Marxian economist . Over the course of his life, Kalecki worked at the London School of Economics , University of Cambridge , University of Oxford , and Warsaw School of Economics , and was an economic advisor to the governments of Poland , France , Cuba , Israel , Mexico , and India . He also served as the deputy director of the United Nations Economic Department in New York City. Kalecki has been called "one of

4736-570: Was a very able student and formalized a generalization of Pascal's theorem , concerning a hexagon drawn within a second-degree curve: Kalecki generalized it for a polygon of 2n sides. Because his father lost a small textile workshop, Kalecki was forced to work as an accountant. During his first year in Warsaw he continued working sporadically and precariously. After finishing his first year of engineering studies, he had to interrupt his studies from 1918 to 1921 to complete military service. Upon leaving

4810-560: Was appointed chairman of the Central Commission for Perspective Planning. The perspective plan had a time horizon of 1961 to 1975 and basically meant a practical implementation of Kalecki's theories of growth in socialist economies . However, the final plan developed by Kalecki was dismissed by board members as defeatist. Then things got worse, as related by Feiwel: "By 1959 the policy makers had forsaken rationality altogether and had reverted to "hurrah planning". Constraints on

4884-520: Was based, more explicitly and systematically than that of Keynes, on the principle of the circular flow of income that goes back to the Physiocrat François Quesnay . According to that principle, income is determined by expenditure decisions, not by the exchange of resources (capital or labor). Kalecki and Keynes claimed that in capitalist economy, production and employment levels ( economic equilibrium ) are determined foremost by

4958-584: Was born on 22 June 1899 in Łódź , Congress Poland , then part of the Russian Empire , to a middle-class Jewish family. Information about his early years is very sparse, part of it being lost during the Nazi occupation . He grew up in a major labor-turbulent industrial center, which affected his future views. In 1917 Kalecki enrolled at the Warsaw Polytechnic to study civil engineering . He

5032-444: Was celebrated. Kalecki gave a University Lecture on the theories of growth under various social systems, after which he was greatly applauded for the soundness of his arguments as well as for the overall trajectory of his life. Keynes had said that knowledge of the laws governing capitalist economy would make people more prosperous, happy and more responsible regarding economic decisions taken. Kalecki contested this view, arguing that

5106-401: Was concerned with demand management . Kalecki distinguished three ways of stimulating demand: through the government improving conditions for private investment (a time-consuming and burdensome for the populace process of which he was skeptical), through redistribution of income from profits to wages, and through public investment that increases employment and demand automatically. Kalecki

5180-481: Was cool and Keynes kept aloof. Although the conclusions they had reached in their work were very similar, their characters could not have been more different. Kalecki graciously neglected to mention that he had a priority of publication . As Joan Robinson stated: "Michal Kalecki's claim to priority of publication is indisputable. With proper scholarly dignity (which, however, is unfortunately rather rare among scholars) he never mentioned this fact. And, indeed, except for

5254-537: Was discarded again with the arrival of neoliberal domination in economics and its main current defined by prices of economic equilibrium. Economist Jan Toporowski said that Kalecki's theory of the business cycle remains "the most serious challenge to general equilibrium macroeconomics", which has prevailed since the late 19th century. More than Keynes, Kalecki was skeptical about government's ability to sustain fiscal and monetary stimulus policies or of business support for full employment. Like Keynes, Kalecki

5328-492: Was engaged in the problems of developing countries . He argued that their industrialization depended on land reform and taxation of land owners and the middle classes . He was skeptical about a positive role of foreign direct investment in stimulating economic modernization. Polish economist Oskar Lange , who worked with Kalecki also on centrally planned socialist economies of the Soviet Bloc , characterized him as

5402-424: Was not able to make a meaningful statement about the total volume of profits in a given period. Kalecki derived this relationship in an extremely concise, elegant and intuitive way. He starts by making simplifications which he later progressively eliminates. These assumptions are: With these assumptions Kalecki derives the following accounting identity : where P   {\displaystyle P\,\ }

5476-591: Was punished on political grounds (a non-merited economic planner stance was attributed to him). He became depressed by Senator Joseph McCarthy 's witch-hunt, as many of his close friends were directly affected. Denounced in the US Senate as a supporter of communism , Kalecki ultimately failed to achieve professional success in the US (although he influenced the future post-Keynesians there), unlike in England, where he had

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