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Finance and the Cambridge Equation: A Commentary Note



    () (Department of Economics, Korea University)


Ciccarone (2004) attempts to show that the Pasinetti theorem allows for the profit-making financial sector. In this effort, however, he ends up with unwittingly associating the theorem with the Wicksellian monetary theory. The present note traces the origin of this uncomfortable association to his incomplete understanding of the income of financial capitalists, and tries on its part to demonstrate that the Pasinetti theorem is in the tradition of the 'monetary analysis' of the (Post) Keynesian monetary theory, in contrast to the 'real analysis' of the Wicksellian theory.

Suggested Citation

  • Man-Seop Park, 2005. "Finance and the Cambridge Equation: A Commentary Note," Discussion Paper Series 0504, Institute of Economic Research, Korea University.
  • Handle: RePEc:iek:wpaper:0504

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    References listed on IDEAS

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    Pasinetti theorem; Monetary analysis; Real analysis;

    JEL classification:

    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian

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