Advanced Search
MyIDEAS: Login to save this paper or follow this series

Three Ways to High ... Unemployment

Contents:

Author Info

  • Kazimierz Laski
Registered author(s):

    Abstract

    The author intends to prove that economic policy in Germany after 1979 was opposed to that recommended by Kalecki in his famous 'Three ways to Full Employment' and was responsible for the surge in unemployment. Part I of the paper sketches the theoretical background of Kalecki's recommendations. Special attention is devoted to private investment, budget deficit and trade balance as factors determining (but not being determined by) private savings. A related topic is the change of the degree of capacity utilization and of labour force. Part II is devoted to an empirical investigation of Germany in 1960-96. The author comes to the conclusion that two factors were mainly responsible for the slowdown of GDP growth after 1979 first, the weak expansion of private investment, caused - at least to some degree - by the restrictive monetary policy of the Bundesbank and, second, the increase in the private propensity to save, related to an engineered shift in the distribution of income from wages to profits. The increase of the trade surplus in the 1980s and then in the 1990s could not prevent the slowing down of GDP growth and the increase of unemployment provoked by these two factors. In the USA, in contrast, the stagnation of private investment in 1980-91 was counterbalanced by a decrease of the private propensity to save and by an increase of the budget deficit. Thus a stagnation of GDP could be avoided and unemployment did not increase very much.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.wiiw.ac.at/three-ways-to-high--unemployment-dlp-511.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 12.

    as in new window
    Length:
    Date of creation: Jan 2000
    Date of revision:
    Publication status: Published as wiiw Working Paper
    Handle: RePEc:wii:wpaper:12

    Contact details of provider:
    Postal: Rahlgasse 3, A-1060 Vienna
    Phone: (+43-1) 533 66 10
    Fax: (+43-1) 533 66 10-50
    Email:
    Web page: http://www.wiiw.ac.at
    More information through EDIRC

    Order Information:
    Web: http://wiiw.ac.at

    Related research

    Keywords: unemployment and its causes; theory of effective demand; private investment; Government budget and trade surplus versus private savings; private savings and GDP; Germany and USA 1960-96;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. A. Bhaduri & K. Laski & M. Riese, 1999. "Effective demand versus profit maximization in aggregate demand/supply analysis: a dynamic perspective," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 52(210), pages 281-293.
    2. Stephan Schulmeister, 1996. "Interest Rates, Investment, Growth, and Public Debt," WIFO Monatsberichte (monthly reports), WIFO, vol. 69(11), pages 729-735, November.
    3. A. Bhaduri & K. Laski & M. Riese, 1999. "Effective demand versus profit maximization in aggregate demand/supply analysis: a dynamic perspective," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 52(210), pages 281-293.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wii:wpaper:12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Customer service).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.