The Theory of Effective Demand

In Kalecki’s works, the theory of effective demand was the least troubled part; it was free of the troubled course of the theory of distribution or the many revisions the theory of investments and economic fluctuations underwent. Its structure has remained basically unchanged since its original formulation in (1933a, 1993b),1 while the author’s efforts were directed to clarifying connections with earlier theories (namely, with Marxian schemes of reproduction) and with other contemporary theories (i.e., Keynes), to specify its microeconomic premises and some methological aspects, and to investigate further the implications of the new scheme for economic policy.