A few remarks on Michal Kalecki's "Political aspects of full employment"
The article deals with the seminal paper of Michal Kalecki entitled "Political Aspects of Full Employment". In the following sections I briefly explain how ambiguous the term of a "full employment level" might be, deliver the basics of Kalecki's concept and discuss the strengths and weaknesses of the above idea in detail. Thus, I came to the conclusion that nowadays the demand-side tools (stressed by Kalecki) are (or should not be) not desired to boost the economy, because of the independent central banks. The concern and the main task for governments nowadays seem to be assuring labour market flexibility so that full employment could be achievable, without direct demand creation that can lead to a wage-price spiral. Using its supply side tools (for instance lowering the level of employment protection legislation, changing the labour code to enable employers to employ and dismiss easily) rather than raising the aggregate demand, the government can contribute to higher employment (i.e. to lower involuntary unemployment) and because of such a policy get closer to the full employment level (measured as a decrease in the natural rate of unemployment). (original abstract)
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