ABSTRACT
This chapter argues that Kalecki’s writings contain many significant insights on money and finance, and that his macroeconomic analysis had a greater appreciation of the role of the monetary sector than has been generally recognized. Dymski (1996: 116) notes that
scholars are in broad agreement that Kalecki’s monetary approach is underdeveloped. . . . We might add that monetary concepts seldom appear in Kalecki’s mature writings; when they do, the author treats them sparingly. For example, in the various permutation of Kalecki’s dynamic investment model, financial elements are incorporated only partially, and the banking system plays a passive role
and that ‘Kalecki purposely set financial factors into the background of his model of the business cycle’ (ibid.: 133: emphasis added).
