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Normal Paths of Growth Shaped by the Supermultiplier

  • Óscar Dejuán
Chapter

Abstract

The Keynesian principle of effective demand states that the equilibrium level of output in a given period is a multiple of the expected autonomous demand (Kalecki, 1971; Keynes, 1936). Can we extrapolate this principle to a long-run dynamic analysis and conclude that the rate of growth of output will eventually depend on the expected rate of growth of autonomous demand? A positive answer would be a significant step towards a long-period theory of output which, according to Eatwell and Milgate, provides the most solid ground for demand-led growth (Milgate, 1982; Eatwell, 1983; Eatwell and Milgate, 1983; Eatwell, 2012).

Keywords

Aggregate Demand Capacity Utilisation Mortgage Loan Normal Capacity Productive Investment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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  • Óscar Dejuán

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