Keynes versus Kalecki: Responses to Lopez and Kriesler

Abstract:

López and Kriesler have argued that Kalecki not only discovered the principle of effective demand independently of Keynes, but in Kalecki’s theory of price, distribution, investment, and money andfinance is superior to Keynes’s General Theory. These claims of superiority may hold against Old (neoclassical synthesis) and New Keynesian macrotheories. This paper explicates why Keynes, however, is clearly superior not only to Kalecki, but also to Old and New Keynesian analysis. The advantages of Keynes’s General Theory analysis of price and distribution, investment, and money and finance are explained.

Key Words::

• finance
• income distribution
• investment
• money