Brian Romanchuk — Primer: The Kalecki Net Income Equation (Part Ii)

This article continues the intelligence of the Kalecki Profit Equation (link to Part I). The Kalecki Profit Equation is an trouble organization human relationship identity (a contention that is truthful past times definition) that determines the marker of aggregate trouble organization sector profits inward damage of other national accounts variables. The amount equation is somewhat imposing, thence the strategy employed hither is to cook upwards the equation past times starting off amongst a simplified model economic scheme that results inward a brief equation, in addition to then adding novel damage progressively. The previous article noted that investment creates a pro-cyclical self-reinforcing loop betwixt it in addition to profits. This article discusses 2 factors that unremarkably deed to moderate the trouble organization cycle: the financial deficit, in addition to the external sector. 

As inward the previous article, the handling hither is aimed at the simplified economical model accounting, in addition to non the amount details of the national accounts. If ane wanted to use the accounting identity to existent globe national accounts, at that spot are a swell many smaller damage that would request to endure added inward in lodge to become the amount accounting identity....

Bond Economics
Primer: The Kalecki Profit Equation (Part II)
Brian Romanchuk