A theory of economic cycles Cover Image

A theory of economic cycles
A theory of economic cycles

Author(s): Imre Dobos, István Ábel
Subject(s): Economy, Marxist economics
Published by: Akadémiai Kiadó
Keywords: dynamic Leontief model; Bródy’s model; economic growth; equilibrium; economic cycles

Summary/Abstract: The theory of economic motion was András Bródy’s main interest. This paper presents a simplifi ed framework of Bródy’s economics. His multi-sector production and price theory is based on the Marxian theory of value reinterpreted by using measurement considerations. Economic motion in this framework is driven by technology represented by the internal proportions of production, not by external shocks. Prices and proportions jointly determine the economic structure and its motion (duality of prices and volumes). We derive the laws of motion of production and use of goods (consumption and accumulation) based on technological accounting balances. These laws determine a cyclical pattern. Using numerical examples we demonstrate how external changes in technology and valuations are propagated in changing the cyclical pattern of motion

  • Issue Year: 40/2018
  • Issue No: 2
  • Page Range: 169-184
  • Page Count: 16
  • Language: English