Kalecki

Michał Kalecki (1899–1970) was a Polish economist whose work and ideas significantly shaped 20th-century macroeconomics. Writing independently of his British contemporaries, Kalecki developed theories of investment, income distribution, and government policy that anticipated and complemented Keynesian analysis. He is regarded as one of the most influential economists in shaping modern macroeconomic thought, particularly in discussions of how aggregate demand, profits, and employment interact in capitalist economies.

Kalecki is best known for his analyses of how profits arise in relation to investment, government spending, taxes, and net exports. He emphasized that the distribution of income between wages and profits affects overall demand and that investment decisions play a central role in determining economic fluctuations and growth. His work also explored the political and institutional constraints on policy, insisting that stabilization measures could be feasible within a democratic framework. One of his notable contributions is the development of what is often referred to as the Kalecki equation or Kalecki-style accounting, which links national income components to profits and employment. His research covered both short-run fluctuations and longer-run growth, including planning and development in capitalist economies.

Key writings include Essays in the Theory of Economic Fluctuations (1935), among other works on macro policy and growth. Kalecki’s legacy lies in his insistence on the endogenous role of demand, distribution, and policy in shaping economic outcomes. His insights remain influential in macroeconomic theory, growth studies, and policy debates within Keynesian and post-Keynesian traditions.