Labour surplus economy: A Neo-Keynesian approach

The book develops an analytical frame work which bears close resemblance that Keynes. However, the results are not generally Keynesian, as every stage an attempt has been made capture the models constructed the essential features a labour surplus economy. The Keynesian building blocks are drastically changed the pre-capitalist economy models to examine the income sustaining effects luxury consumption or famine relief expenditure; to discern the links between the pattern of foreign trade, the commercialisation the agriculture and the deindustrialisation of India; and analyse the economic consequences of usury and trading in food-grains. For dual economy the author starts with reformulation the Keynes-Kaldor theory of effective demand and distribution of income, and extends the model to allow for the differences the adjustment process the two sectors, monetary dualism, and the operations of financial institutions and the Treasury. The analysis throughout is rigorous; but the focus is always on live economic issues. Of special interest to development economists and policy makers should be the discussion on the behaviour of intersectoral terms of trade, the short-term and long-term aspects of monetary policy, the stagnation of industrial production in the face of a bumper harvest, inflationary depression, and some other puzzling experiences of LDCs.