Abstract
‘Capital-rich’ economies typically experience Keynesian unemployment, which an ELR program can offset with expenditure that has a multiplier effect. ‘Capital-poor’ economies normally suffer from Marxian unemployment, which an ELR can counter-act with expenditure, first having a multiplier impact, but subsequently developing an accelerator effect, and building up productive capacity.
Some diagrams and equations are taken from an unpublished paper by myself and Ray Majewski. Thanks to Mike Murray for suggestions and advice.
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References
Lowe, A. 1976. The Path of Economic Growth. Cambridge, UK: Cambridge University Press.
Nell, E.J. 1998. The General Theory of Transformational Growth: Keynes After Sraffa. Cambridge, UK: Cambridge University Press.
Nell, E.J., and K. Errouaki. 2013. Rational Econometric Man: Transforming Structural Econometrics. Cheltenham: Edward Elgar.
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Nell, E.J. (2017). The Employer of Last Resort for a ‘Capital-Poor’ Economy. In: Murray, M., Forstater, M. (eds) The Job Guarantee and Modern Money Theory. Binzagr Institute for Sustainable Prosperity. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-46442-8_4
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DOI: https://doi.org/10.1007/978-3-319-46442-8_4
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