Planning for Peace
The prospect of peace brought back into the political discussion and Kalecki’s research agenda the question of the consequences of full employment for international trade and payments. Kalecki had earlier expressed his critical view on the possibilities of achieving full employment without international co-operation. In his articles for Przegląd Socjalistyczny in 1932, he had alluded to the difficulties of trying to achieve and maintain full employment in an open economy. On a unilateral basis, if one government alone attempts to reflate its economy, it risks difficulties in balancing its foreign trade, as domestic demand rises faster than demand among its trading partners. These difficulties could be overcome on a multilateral basis if reflation is coordinated with other governments, in order to ensure that all imported more so that all exported more. But this would be prone to imperialist rivalry, undermining international co-operation.