The recent global crisis has sparked interest in the relationship between income inequality, credit booms, and financial crises. Rajan (2010) and Kumhof and Rancière (2011) propose that rising inequality led to a credit boom and eventually to a financial crisis in the US in the first decade of...

The results of the Bhaduri-Marglin model build on the assumption of an exogenous profit share. The present paper examines critically the robustness of these results by asking how its results change if we take the endogeneity of the profit share into account. In doing so, the constituents of the...

In a Kaleckian monetary distribution and growth model with conflict inflation we assess the role of a Non-Accelerating Inflation Rate of Unemployment (NAIRU). The short-run stability of a NAIRU is examined taking into account real debt effects of accelerating and decelerating inflation, and the...

This paper provides textual evidence that Boughton’s interpretation of Keynes’s proposals for shaping the international monetary system of the post-war period misses the point. I want to investigate two points which contradict Boughton’s interpretation published by the...

This paper restates the post-Keynesian view of unemployment within a NAIRU framework. In the short run, the private effective labour demand need not be downward sloping because of debt deflation and wage-led demand regimes. In the medium run, the NAIRU will be endogenous because of the social...

I thank Tom Michl for his insightful and gracious note (Michl 2013) pointing out a mistake in my paper (Palley 2013a) on fiscal policy in post-Keynesian economics. Despite correctly deriving the analytic condition (ibid., p. 85, footnote 6), I incorrectly drew the IS-ZZ diagram in figure 2,...

We develop a disequilibrium macrodynamic model in which two types of labor (regular and non-regular employment) are incorporated. We analyze how the expansion of the wage gap between regular and non-regular employment affects the economy. If the steady state equilibrium exhibits the wage-led...

The reflections in this article stem from Andreatta’s 1958 analysis on Income distribution and capital accumulation, in the form of a stylized interpretation of his thought as a political economist. His theoretical analyses are reinterpreted with particular attention to the effects of...

The paper provides an overview of the concept of wage-led growth, both as an analytical concept and as an economic policy strategy. At the core of our analysis is the distinction between wage-led and profit-led demand regimes. The Kaleckian tradition in macroeconomics asserts that a higher wage...