Review of Keynesian Economics

A Kalecki fable on debt and the monetary transmission mechanism

Jan Toporowski *

Keywords: Kalecki, Keynes, monetary policy, debt


Kalecki explained debt resolution by means of a fable about monetary circulation between mutually indebted individuals. This note explains the context and some of the theoretical implications of the fable. These point to an asymmetry in monetary policy in which excessively tight monetary policy may restrict economic activity and force the resort to informal debt.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information