In the present paper we explicitly introduce interest payments and debt into a Kaleckian distribution and growth model with an investment function very close to Kalecki's original writings. This implies that growth in this model is 'wage-led'. The effects of interest rate variations on the...

This paper challenges the institutional sclerosis view of the German crisis according to which rigid labour markets and generous welfare state institutions have driven Germany into its position as 'Europe's sick man'. In general, the view is not convincing, because the underlying hypotheses...

We analyse the effects of interest rate variations on the rates of capacity utilisation, capital accumulation and profit in a simple post-Kaleckian distribution and growth model. This model gives rise to different potential accumulation regimes depending on the values of the parameters in the...

Germany has experienced a period of extreme nominal and real wage moderation since the mid-1990s. Contrary to the expectations of liberal economists, this has failed to improve Germany's mediocre economic performance. However, Germany is now running substantial current account surpluses. One...