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Observations on Kaldorian and Post-Keynesian Approaches to Inflation

  • Joseph Halevi
Chapter

Abstract

This chapter discusses the Kaldorian and Post-Keynesian approaches to inflation. The main thrust of the chapter is a critique of the notion of a fixed markup. Through the use of a two sector capital goods-consumption goods model with sectoral degrees of capacity utilisation, it is shown that the markup itself varies according to changes in the sectoral structure of the economy, including nonuniform changes in the sectoral rates of utilisation. It is suggested that viewing inflation as stemming from money wage increases relatively to productivity is not as robust as it might appear in some of the Post-Keynesian literature.

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Copyright information

© Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile 2016

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  • Joseph Halevi

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