IDEAS home Printed from
   My bibliography  Save this article

Uma revisão das controvérsias sobre a Equação de Cambridge [A review of the controversies about the Cambridge Equation]


  • José Luís Oreiro

    () (UFPR)


The objective of this article is to make a critical evaluation of the controversies about the Cambridge Equation both in the initial phase - when Pasinetti, Kaldor, Meade, Samuelson and Modigliani got involved - and in the second round that followed the publication of Steedman´s article, which contends that the Cambridge Equation still holds even in the case of a balanced government budget. In this setting we will argue that (i) the Meade-Samuelson-Modigliani theorem (MSM theorem) does not depend on specific hypotheses about the shape of the production function, being fully compatible with the problems of re-switching of techniques raised by the "Capital Controversy", which are only relevant for the stability of the golden-age equilibrium growth path; (ii) the Pasinetti-Theorem is, however, more general than the MSM theorem since (a) it holds true even after the relaxation of some simplifying hypotheses of its original version, which does not occur with the MSM theorem, and (b) Kaldor´s version of the Pasinetti theorem holds true even in the case of the "euthanasia of capitalists".

Suggested Citation

  • José Luís Oreiro, 2005. "Uma revisão das controvérsias sobre a Equação de Cambridge [A review of the controversies about the Cambridge Equation]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 15(2), pages 119-149, May-Augus.
  • Handle: RePEc:nov:artigo:v:15:y:2005:i:2:p:119-149

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Graciela Kaminsky & Saul Lizondo & Carmen M. Reinhart, 1998. "Leading Indicators of Currency Crises," IMF Staff Papers, Palgrave Macmillan, vol. 45(1), pages 1-48, March.
    2. Morris Goldstein & Carmen M. Reinhart, 2000. "Assessing Financial Vulnerability: An Early Warning System for Emerging Markets," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 100.
    3. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    4. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win, pages 14-23.
    5. Reuven Glick & Michael M. Hutchison, 1999. "Banking and currency crises; how common are twins?," Proceedings, Federal Reserve Bank of San Francisco, issue Sep.
    6. Diehl, Markus & Schweickert, Rainer, 1998. "Currency crises: Is Asia different?," Kiel Discussion Papers 309, Kiel Institute for the World Economy (IfW).
    7. Velasco, Andres, 1987. "Financial crises and balance of payments crises : A simple model of the southern cone experience," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 263-283, October.
    8. World Bank, 2000. "World Development Indicators 2000," World Bank Publications, The World Bank, number 13828.
    9. repec:wsi:wschap:9789814749589_0011 is not listed on IDEAS
    10. Asli Demirgüç-Kunt & Enrica Detragiache, 1998. "The Determinants of Banking Crises in Developing and Developed Countries," IMF Staff Papers, Palgrave Macmillan, vol. 45(1), pages 81-109, March.
    Full references (including those not matched with items on IDEAS)

    More about this item


    balanced growth; rate of profit; stability;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nov:artigo:v:15:y:2005:i:2:p:119-149. 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: (Bárbara Freitas Paglioto). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.