Full text: Brief von Josef Steindl an Jerzy Osiatyński

A-1050 Wien Schwarzhorng 10/17 
Jfily 19, 1079- 
Dear Osiatynski, 
T hank you for your letter. I am very glad that you 
find it possible to include my paper on the three versions of 
the trade cycle into the Kalecki volume 2, and I certainly never 
expected anything but the acknowledgements which you propose to make. 
Let re repeat that I was very happy to receive the volume 1 
and that T realise y'U have done a very considerable and successful 
piece of w irk 
Concerning y>ur p int abut my ambridge paper: If the 
oligip lists sell all their products to the government and the 
government sipply finances the increased price by a budget efiqit 
then y u are certainly right: the utilisation will be unchanged 
and the v lume if profits will be increased ( I think it is by a mere 
slip that ypu state it will be the same) because the increased 
saving due t> the olig p'lists will be compensated by government 
dissaving My only c 'mment is that in practice the oligoplistic sector 
will always sell a great part of its produfet to private customers 
and an incre se in profit margins will therefore reduce the real 
income of the rest of the economy, leading therfo e to a decrease 
in utilisation. Your argument is, then, a qualification to my 
statement, and it is certainly interesting in view of the 
close customer relation of oligopolists and g vernment. 
As to your other argument in relation to section 5 of my 
Trade C ir cle paper, I never denied that Kalecki perfectly well knew 
all this ( the influence of debts or of commitments on ■'■nvestment ), 
but it is n^t included in his strict mathematical ( or formal ) 
formulation of the trade cycle theory - which, incidentally, I did not 
want to criticise at all, because I realise that a trade cycle theory 
ought ti embody only the most important and general elements of 
an explanation. 
It strikes me h wever, that this section 5 of my paper 
leaves something in the dark which may have contributed to your 
misund rstanding The c ntrast between a"marginal" and an "integral" 
formulation in principle applies to b th the financial incentives 
to invest (internal saving - ir degree of indebtedness) and to 
the demand incentives ( increase in demand - or capacity utilisation ).

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