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Kalecki and Fiscal Policy

In: Kalecki’s Relevance Today

Author

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  • Ruggero Paladini

Abstract

There are two essays by Kalecki explicitly dedicated to economic policy, and more particularly to the fiscal policy from a theoretical point of view: an article in the Economic Journal (September 1937) ‘A Theory of Commodity, Income and Capital Taxation’, and the 1944 essay ‘Three Ways to Full Employment’, in The Economies of Full Employment written in collaboration with other researchers of the Institute of Statistics of Oxford University. I would like to present a rapid synthesis of these two works, and then discuss two particular aspects: the modified profit and the wealth tax on the one hand, and the problem of the multiplicative effects of these taxes and Haavelmo’s theory, on the other. My conclusion highlights some observations on the role of fiscal policy in economic development as seen by Kalecki.

Suggested Citation

  • Ruggero Paladini, 1989. "Kalecki and Fiscal Policy," Palgrave Macmillan Books, in: Mario Sebastiani (ed.), Kalecki’s Relevance Today, chapter 13, pages 220-230, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10376-8_13
    DOI: 10.1007/978-1-349-10376-8_13
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