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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© 2016 Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile
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Halevi, J. (2016). Observations on Kaldorian and Post-Keynesian Approaches to Inflation. In: Post-Keynesian Essays from Down Under Volume IV: Essays on Theory. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-47529-9_33
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DOI: https://doi.org/10.1057/978-1-137-47529-9_33
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Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-47528-2
Online ISBN: 978-1-137-47529-9
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