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A Theory of Accumulation and Secular Stagnation: A Malthusian Approach to Understanding a Contemporary MalaiseSome Concluding Thoughts

A Theory of Accumulation and Secular Stagnation: A Malthusian Approach to Understanding a... [The concept of Accumulation provides a reason (in addition to Keynes’s ideas) that aggregate demand should be added to Adam Smith’s list of fundamental factors affecting growth and resource utilization in a market economy. Nevertheless, Adam Smith’s contentions that the most important factors governing prosperity and growth are the degree to which the rule of law prevails and the amount of investment that is undertaken remain valid. The fact that Accumulation, among other factors, can force an economy out of equilibrium, and eliminate the possibility of an equilibrium, should cause economists to give more consideration to behavior that takes place outside of equilibrium. Doing so may require economists to loosen their adherence to their standard model and embrace the more pluralistic approach to causality advocated by Malthus.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Theory of Accumulation and Secular Stagnation: A Malthusian Approach to Understanding a Contemporary MalaiseSome Concluding Thoughts

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Publisher
Palgrave Macmillan US
Copyright
© The Editor(s) (if applicable) and The Author(s) 2016
ISBN
978-1-349-71984-6
Pages
124 –127
DOI
10.1057/9781137562210_6
Publisher site
See Chapter on Publisher Site

Abstract

[The concept of Accumulation provides a reason (in addition to Keynes’s ideas) that aggregate demand should be added to Adam Smith’s list of fundamental factors affecting growth and resource utilization in a market economy. Nevertheless, Adam Smith’s contentions that the most important factors governing prosperity and growth are the degree to which the rule of law prevails and the amount of investment that is undertaken remain valid. The fact that Accumulation, among other factors, can force an economy out of equilibrium, and eliminate the possibility of an equilibrium, should cause economists to give more consideration to behavior that takes place outside of equilibrium. Doing so may require economists to loosen their adherence to their standard model and embrace the more pluralistic approach to causality advocated by Malthus.]

Published: Aug 5, 2016

Keywords: Baran and Sweezy; equilibrium; John Hicks; methodology of economics

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