Paperback, 176 pages
Released: January 1968
In his Essays in the Theory of Business Cycle published in Polish in 1933, Kalecki clearly stated the principle of effective demand in mathematical form. By 1935 he outlined his theory of employment, demolished the then-orthodox remedy for a depression—that is, wage cutting—and pinpointed the importance of investment for economic dynamics.
Thus, although his training had been in Marxist economics, he succeeded in anticipating the Keynesian system, and, as Joan Robinson has pointed out, his claim to priority of publication is indisputable although he never mentioned this fact.
Theory of Economic Dynamics is a reworking by the author of two previous books, Essays in the Theory of Economic Fluctuations and Studies in Economic Dynamics. As the author points out, in combining two books the presentation and the argument were substantially revised, new subjects were introduced, and the statistical treatment broadened.