Extended Kalecki-Kaldor Model Revisited

This contribution is devoted to an extended Kalecki-Kaldor model where investments and savings also depend on the nominal interest rate. Firstly, differential equations for the development of the real product (output) and capital stock of the economy are formulated for a given value of the inflation rate. Secondly, we focus attention on a dynamic model of the money market; we consider either the LM model or the Fisherian model. Finally, we investigate limiting behaviour, stability and robustness of the complete model. Both the analytical approach and computer modelling are discussed. A numerical example illustrating both the methods and results is supplied.