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Scientific paper

Text

The growth imperative revisited: a rejoinder to Gilányi and Johnson

Author:
Mathias Binswanger

Entry type:
Scientific paper

Year of publication:
2015

Publishers:
Journal of Post Keynesian Economics

Language:
English

External content:
To the content

Abstract: In Binswanger (2009) it was shown that in a simple circular flow model of a pure credit economy, positive growth rates are necessary in the long run in order to enable firms to make profits in the aggregate. If the growth rate falls below a certain positive threshold level, firms will make losses. Certain aspects of this model are challenged by the papers of Zsolt Gilányi and Reeves Johnson in this issue of the Journal But nevertheless, both papers confirm the existence of a growth imperative in capitalist economies. This may be taken as evidence that the finding of a growth imperative is quite robust with respect to different model assumptions.



Journal of Post Keynesian Economics, Volume 37, Issue 4, 2015

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