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American Institute of Economic Research,
December 14, 2018, 7 pgs.
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Professor Mueller credits the Polish
economist, Michal Kalecki with developing this idea . The Wikipedia has a very
ineresting and detailed biography and discussion of Kalecki's many significant
contrabutions to economic theory.
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Kalecki also developed mathematical equations
to describe profits, income disribution, and savings in a capitalist economy.
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But Mueller writes that: "Few authors
have exerted a more disastrous influence on economic policy that Michal Kalecki
(1899 - 1970_. This Marxist economist prepared the theoretical ground work for
the expansion of government spending, particularly in the countries of the
third world."
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And further,: "More explicit than the
Keynesian theory of aggregate demand, the Kaleckian model postulates that
deficit spending is self-financing.
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And: "The system of state capitalism is
in permanent financial need, and the Kaleckian theory offers the excuse to run
high budget deficits".
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"Using a similar set of equations as in
the model of Kalecki, according to which private savings automatically finance
the government's budget deficit, the adherents of the modern monetary theory
have become prominent promoters of deficit spending as the motor for economic
growth".
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L. Randall Wray - MMT
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Keynesian Economics
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Michael Kalecki - Polish Marxist economist
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Michael Kalecki - economic equations
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