IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-10376-8_11.html
   My bibliography  Save this book chapter

Savings, Investment and Finance in Kalecki’s Theory

In: Kalecki’s Relevance Today

Author

Listed:
  • J A Kregel

Abstract

‘Thus capitalists, as a whole, determine their own profits by the extent of their investment and personal consumption ... capitalists as a whole do not need money in order to achieve this’ (Kalecki, 1971, p. 13).1The first part of the above quotation will be recognised as Kalecki’s well-known aphorism that capitalists ‘get what they spend’, that they cannot decide to earn more, they can decide only to spend more. Workers can neither decide to earn more, nor spend more than they earn: they ‘spend what they get’. This aphoristic representation of Kalecki’s position emphasises its difference from Keynes’s explanation of the same phenomenon. Keynes relied on the propensity to consume and the marginal efficency of capital to explain aggregate expenditure via the concept of effective demand predicated on monetary factors determining the rate of interest; the distribution of income had only secondary importance. Kalecki, on the other hand, gave centre stage to the role of income distribution in determining aggregate expenditure and, as the second half of the opening quotation indicates, considered money to be unnecessary to his results.

Suggested Citation

  • J A Kregel, 1989. "Savings, Investment and Finance in Kalecki’s Theory," Palgrave Macmillan Books, in: Mario Sebastiani (ed.), Kalecki’s Relevance Today, chapter 11, pages 193-205, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10376-8_11
    DOI: 10.1007/978-1-349-10376-8_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Willi Semmler & Fabio Della Rossa & Giuseppe Orlando & Gabriel R. Padro Rosario & Levent Kockesen, 2023. "Endogenous Economic Resilience, Loss of Resilience, Persistent Cycles, Multiple Attractors, and Disruptive Contractions," Working Papers 2309, New School for Social Research, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-10376-8_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.