| | Re: HES: DISC -- Multiplier- accelerator model (Site not responding. Last check: 2007-10-26) |
 | | The acceleration principle is surely there (Kalecki indeed got it from Aftalion), but I am not so sure about the multiplier. |
 | | Although the quantification of the effect of increased expenditure on consumption looks very much like a multiplier, it only spreads increases in consumption, not total expenditure, while for JMK the effect is global, as it includes (and indeed is centred on) investment.] |
 | | If that's not a multiplier-accelerator relationship (and even less a multiplier-accelerator theory of the cycle), it's a (Wicksellian?) cumulative process -which almost everybody in the 1920s put at the basis of their trade cycle theories (and which is, by the way, how Haberler considered Harrod's theory -in a letter to him in 1937). |
| www.eh.net /lists/archives/hes/may-2001/0018.php (1066 words) |