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The Problem of the Monetary Realization of Profits in a Post Keynesian Sequential Financing Model: Two solutions of the Kaleckian option

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  • Jean-Francois Renaud

Abstract

In a Post Keynesian theoretical framework with sequential financing, two solutions to the problem of the monetary realization of profits are presented. Both of these are consistent with the Kaleckian view, according to which actual profits arise from the present expenditure of their anticipated amount. These two solutions form the basis for a theoretical reconsideration of the relationships among the creation of money, consumption, savings and investment.

Suggested Citation

  • Jean-Francois Renaud, 2000. "The Problem of the Monetary Realization of Profits in a Post Keynesian Sequential Financing Model: Two solutions of the Kaleckian option," Review of Political Economy, Taylor & Francis Journals, vol. 12(3), pages 285-303.
    • Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:285-303
    DOI: 10.1080/09538250050127463
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    References listed on IDEAS

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    1. Seccareccia, M, 1996. "Pricing, Investment and the Financing of Production Within the Framework of the Monetary Circuit: Some Preliminary Evidence," Working Papers 9609e, University of Ottawa, Department of Economics.
    2. John F. Henry & L. Randall Wray, 1998. "Economic Time," Economics Working Paper Archive wp_255, Levy Economics Institute.
    3. Seccareccia,M., 1991. "Post Keynesian Fundism and Monetary Circulation," Working Papers 9113e, University of Ottawa, Department of Economics.
    4. Eltis, W A, 1980. "Malthus's Theory of Effective Demand and Growth," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 19-56, March.
    5. Philip Arestis & Malcolm Sawyer (ed.), 1994. "The Elgar Companion to Radical Political Economy," Books, Edward Elgar Publishing, number 19, March.
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    Cited by:

    1. Guglielmo Forges Davanzati, 2014. "Unemployment benefits, the 'added worker effect' and income distribution in a monetary economy," Working Papers PKWP1402, Post Keynesian Economics Society (PKES).
    2. Juan Barredo-Zuriarrain, 2019. "Money supply is endogenous and the Venezuelan hyperinflation is a monetary phenomenon," Post-Print halshs-03131095, HAL.
    3. Olivier Allain, 2007. "Monetary circulation, the paradox of profits, and the velocity of money," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00196485, HAL.
    4. Andrea Pacella, 2008. "The Effects Of Labour Market Flexibility In The Monetary Theory Of Production," Metroeconomica, Wiley Blackwell, vol. 59(4), pages 608-632, November.
    5. Edouard Cottin-Euziol & Nicolas Piluso, 2020. "Revenues and demand in a monetary economy of production [Revenus et demande dans une économie monétaire de production]," Working Papers hal-02511407, HAL.
    6. Javidanrad, Farzad, 2021. "Paradox of Monetary Profit, Shortage of Money in Circulation & Financialisation," The Warwick Economics Research Paper Series (TWERPS) 1365, University of Warwick, Department of Economics.
    7. Edouard Cottin-Euziol & Nicolas Piluso, 2024. "Refutations of Say’s Law and Dynamics of a Monetary Economy of Production," Review of Radical Political Economics, Union for Radical Political Economics, vol. 56(1), pages 101-115, March.
    8. Lorenzo Di Domenico, 2023. "The Paradox of Profits in an AB-SFC Model," Bulletin of Political Economy, Bulletin of Political Economy, vol. 17(1), pages 47-90, June.
    9. Bruun, Charlotte & Heyn-Johnsen, Carsten, 2009. "The paradox of monetary profits: an obstacle to understanding financial and economic Crisis?," Economics Discussion Papers 2009-52, Kiel Institute for the World Economy (IfW Kiel).
    10. Claude Gnos, 2012. "The unemployment issue," Chapters, in: Claude Gnos & Sergio Rossi (ed.), Modern Monetary Macroeconomics, chapter 6, pages 166-192, Edward Elgar Publishing.
    11. Guglielmo Forges Davanzati & Andrea Pacella, 2010. "Emulation, indebtedness and income distribution: A monetary theory of production approach," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(1), pages 147-165.
    12. Edouard Cottin-Euziol & Hassan Bougrine & Louis-Philippe Rochon, 2024. "The reflux phase in monetary circuit theory and stock–flow consistent models," Post-Print hal-04420693, HAL.
    13. Edward Nell, 2002. "On Realizing Profits in Money," Review of Political Economy, Taylor & Francis Journals, vol. 14(4), pages 519-530.

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