ABSTRACT
Keynes and Kalecki were the forerunners of the models of economic dynamics based on the Principle of Effective Demand (PDE) and assigned central role to investment for understanding dynamics. Kalecki’s model describes a regular cyclical dynamics - with well-marked standard - associated with dual and lagged investment effect. Keynes’s model in turn describes a potentially unstable dynamics, a result of the decisions of agents whose expectations are formed under conditions of uncertainty. This article aims to build an integrated interpretation of Keynes and Kalecki’s views, enabling a better understanding of the stylized facts that show that the capitalist dynamic is marked by phases of cyclical regularity that are eventually and suddenly broken, leading to instability.
KEYWORDS:
Dynamics; investment; cycle; instability; principle of effective demand