tag:blogger.com,1999:blog-8595404115121834255.post4374195667450820185..comments2024-03-28T03:24:05.678-04:00Comments on NAKED KEYNESIANISM: Krugman believes the US economy is wage-ledMatias Vernengohttp://www.blogger.com/profile/09521604894748538215noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8595404115121834255.post-63203324423889487452011-08-17T11:13:34.744-04:002011-08-17T11:13:34.744-04:00B&M are firmly in the profit led stuff,. They...B&M are firmly in the profit led stuff,. They use a Cambridge equation model rather than a super-multiplier one. Income distribution might have ambiguous effects on growth, but the notion that investment follows profits and not demand is devoid of logical coherence.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-386283897829278462011-08-16T10:48:26.402-04:002011-08-16T10:48:26.402-04:00That makes all the sense in the demand led world. ...That makes all the sense in the demand led world. Do Bhaduri and Marglin have further thoughts?Steve Bannisterhttps://www.blogger.com/profile/14466785184416801339noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-35653605820978890672011-08-16T01:49:27.896-04:002011-08-16T01:49:27.896-04:00Profit-led in the sense of the Kaleckian model is ...Profit-led in the sense of the Kaleckian model is logically inconsistent. Nobody invests because profits are high, if they have no demand for their products. Investment follows the accelerator. What is possible is growth with worsening of income distribution. For example, the so-called Brazilian Miracle in the late 1960s. Worse income distribution led to a consumption boom, since the upper and middle classes could consume more, and as a response investment boomed.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-67014562926993010002011-08-15T21:06:11.356-04:002011-08-15T21:06:11.356-04:00Matias, you at least would know...when was the las...Matias, you at least would know...when was the last significant place/period of a profit-led economy? China? Any in LA?Steve Bannisterhttps://www.blogger.com/profile/14466785184416801339noreply@blogger.com