A Realistic Dynamic Form

Abstract

Orthodox economic dynamics employs a supply-side approach. This has had a characteristic impact on both the dynamic form of existing growth models and the explanation of the growth process. The contribution that might be made to this subject by a new demand-side approach has not even been contemplated. It is argued here that the dynamic form of a realistic growth model is the outcome of an interaction between strategic demand and the strategic response of supply-side variables. In this chapter I outline a realistic dynamic form for my model, and in the next I examine the concept of strategic demand and its interaction with strategic response.