Abstract
As is well known, the warranted rate of capital accumulation is unstable. This rate is defined by the equality of aggregate demand, I/s (where 1/s is the multiplier), to aggregate supply, K/v (where 1/v is the productivity of the capital stock), and v is assumed constant, so that fixed coefficients prevail. Also there is either no, or Harrod-neutral, technical progress. Relative prices are assumed practically fixed, changing only slowly, with changes in the rate of profit. There is a given, initial money wage.
* Journal of Post Keynesian Economics, 5(1) (Fall 1982) pp. 104–13. Thanks to Chidem Kurdas for helpful comments.
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© 1992 Edward J. Nell
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Nell, E.J. (1992). Growth, Distribution, and Inflation. In: Transformational Growth and Effective Demand. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21779-3_24
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DOI: https://doi.org/10.1007/978-1-349-21779-3_24
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