This paper explores the Marxian genetic root of the multiplier in order to clarify its foundations and validity conditions. Though the analysis is restricted to the first two volumes of Capital and the early contributions by Kalecki in the 1930s, we argue that we can draw from these works...

In this paper two basic policy paradigms are distinguished: updated liberalism that is fully aware of the limits to markets and therefore aims at their active regulation, and neo-liberalism that is based on market fundamentalism and aims at privatisation, deregulation and budgetary austerity....