ABSTRACT
This chapter explores Kalecki’s micro-distribution theory in contradistinction to the theory of value. It argues that the degree of monopoly is in this way integral to relating the different components of the Kaleckian system. The anti-equilibrium degree of monopoly approximates the role of the traditional equilibrium price system that translates and denominates all variables into a common unit. The degree of monopoly is a standard in which everything else is determined. Interrelation across the system is intermediated by the degree of monopoly. New behavioural relationships emerge in the process of aggregation from firm to industry level. As a theory of price determination, while sharing features in common with traditional models of oligopoly, the Kaleckian account is distinctive. From the perspective of the firm, firms are faced with irreducible indeterminacy and irreducible instability. This explains their behaviour and the nature of their environments.
