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Harrodian Instability: An Unhelpful Analytical Concept

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  • Attilio Trezzini

Abstract

By reconsidering the concept of normal degree of utilization in view of the fact that growth occurs through irregular fluctuations, the paper points out elements of weakness in the formalizations of the principles that underlie the notion of Harrodian instability. Since the latter was at the origin of the adoption of fully adjusted positions to represent long-term trends of the economy, such arguments call into question this way of addressing demand-led growth. JEL Classification : O40, E12

Suggested Citation

  • Attilio Trezzini, 2021. "Harrodian Instability: An Unhelpful Analytical Concept," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(2), pages 320-336, June.
    • Handle: RePEc:sae:reorpe:v:53:y:2021:i:2:p:320-336
    DOI: 10.1177/0486613420967201
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    References listed on IDEAS

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    More about this item

    Keywords

    Harrodian instability; demand-led growth theory; capacity utilization; capital accumulation;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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