Recent Kaldorian growth models emphasize the need to reconcile the demand-led actual rate of growth and the potential rate of growth. This issue is revisited in light of criticism suggesting it is a ‘red herring’. An explicit model of the supply side is used to show that, in a mature economy, it is unlikely that steady-state, demand-led growth will always be automatically accommodated by the supply side. The conclusion reached is that attention must, therefore, be paid to the possible emergence of supply constraints on growth, and the implications thereof for steady-state, demand-led growth models.
You are not authenticated to view the full text of this chapter or article.
Get access to the full article by using one of the access options below.
Pay to Access Content (PDF download and unlimited online access)