Author： Sharpe Keiran
Publisher： Routledge Ltd
ISSN： 1465-3982
Source： Review of Political Economy, Vol.18, Iss.2, 2006-04, pp. : 173-191
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
This paper models an economy which suffers from a coordination failure and lack of effective demand in the long run. Specifically, it shows that an input–output economy, with or without credit rationing, converges to a long-period growth path, but that this path is generally Pareto sub-optimal. Yet, although Keynesian problems extend to the long run, typical Keynesian solutions do not: the government seems generally incapable of sustaining growth by demand management measures. The question as to what the government can do to sustain growth is an open one.
Related content
A post-Keynesian model of output, employment and monetary demand
Review of Political Economy, Vol. 16, Iss. 3, 2004-07 ,pp. :
Access to resources
Recommend
Cadrisme within a Post-Keynesian Model of Growth and Distribution
By Lavoie Marc
Review of Political Economy, Vol. 21, Iss. 3, 2009-07 ,pp. :
Testing the demand-led and BOP-constrained growth model: a system approach
Applied Economics Letters, Vol. 14, Iss. 5-6, 2007-04 ,pp. :