d680c458d3 At the end of World War II, Kalecki worked for some time at the International Labour Office in Montreal, and then subsequently in the United Nations Secretariat in New York, where he was responsible for presenting the World Economic Reports. Nashville: University of Tennessee Press. This in turn limits future output, and creates over time a pattern of cyclical movement of output. Conversely, of course, a deterioration in the terms of trade can take away the benefits of productivity growth in the export sector. This is why Kalecki emphasised that investment in infrastructure and industry must be accompanied by measures to expand agricultural production in the long and short term.
References and Related Readings. In Collected Works, ed. This obviously has a positive effect: the higher the intensity of innovation, the higher the rate of growth of the economy. He also therefore missed out on the potential significance of the self-reproducing capital goods sector, which played such an important role in the planning models of Feldman and Mahalanobis, among others. This will not be the case if the peasants profit from the increases in food prices, because then they buy more industrial consumption goods out of their higher incomes. Cambridge: Cambridge University Press, 1972, reprinted in Collected Works, Vol. However, Kalecki envisaged three important obstacles to such a strategy. S. (1973). Shortage of necessities (especially food) would create an inflationary problem which would not be overcome through taxation of profits, and which would involve real wage declines which Kalecki found to be unacceptable.
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