IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-11786-4_14.html
   My bibliography  Save this book chapter

A Dynamic Approach to the Theory of Effective Demand

In: Profits, Deficits and Instability

Author

Listed:
  • Anwar Shaikh

Abstract

This chapter attempts to re-situate the theory of effective demand within a dynamic non-equilibrium context. Existing theories of effective demand, which derive from the works of Keynes and Kalecki, are generally posed in static equilibrium terms. That is to say, they serve to define a given level of output which corresponds to the equilibrium point between aggregate demand and supply. We propose to generalise this analysis in three ways. First, we shall extend the analysis to encompass a dynamic, that is, moving short-run path of output, rather than a merely static level. Second, we shall show that this dynamic short-run path need not imply an equilibrium analysis, since it can arise from either stochastically sustained cycles or deterministic limit cycles.1 And third, we will provide generalisation of the theory of effective demand and a possible solution in the instability of warranted growth.

Suggested Citation

  • Anwar Shaikh, 1992. "A Dynamic Approach to the Theory of Effective Demand," Palgrave Macmillan Books, in: Profits, Deficits and Instability, chapter 14, pages 271-294, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11786-4_14
    DOI: 10.1007/978-1-349-11786-4_14
    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.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Claudio H. Dos Santos & Gennaro Zezza, 2008. "A Simplified, ‘Benchmark’, Stock‐Flow Consistent Post‐Keynesian Growth Model," Metroeconomica, Wiley Blackwell, vol. 59(3), pages 441-478, July.
    2. Claudio Dos Santos, 2004. "Keynesian Theorizing During Hard Times: SStock-Flow Consistent Models as an Unexplored 'Frontier' of Keynesian Macroeconomics'," Macroeconomics 0405023, University Library of Munich, Germany.
    3. Jamee K. Moudud, 2000. "Finance in a Classical and Harrodian Cyclical Growth Model," Macroeconomics 0004036, University Library of Munich, Germany.
    4. Claudio H. Dos Santos, 2004. "Keynesian Theorizing During Hard Times: Stock-Flow Consistent Models as an Unexplored 'Frontier' of Keynesian Macroeconomics," Method and Hist of Econ Thought 0406001, University Library of Munich, Germany.

    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:978-1-349-11786-4_14. 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.