A-1050 Wien,Schwarzhorng.10/17 
March 33,1987 
Professor Ccmulka, 
London School of Economics 
Dear Professor Gomulka, 
Prof .Laski has handed me a copy of your paper with the implication 
that you would not mind receiving some comments. 
This is a very interesting paper on a completely neglected 
topic. I have not studied it as much as it deserves but 
I should rather like to convey you my first impressions on 
the essential features. 
First a purely subjective remark: Your two types of capitalsiim , 
cautious and rash, which you regard as alternative systems, 
seem to me in essence to co-exist - and their expression 
is just the contrasting existence of a trend and a cycle! 
But now to something essential: I am exceedingly pmrzzled 
by your treatment of rash capitalism. You start from 
the problem of long term development ("trend") and arrive 
at the picture of a movement between a repelling floor 
and ceiling. I should expect that this is a kind of long term 
cyclical movement, but on top of page 18 , w ithout any 
motivation, you identify it with the business cele, 
letting the Kaleckian theory of the cycle disappear, 
and representing the trend by a purely exogenous floor and 
ceiling. I may not have understood something, but to me it 
seems like a change of scene behind the curtain. 
( A side remark: If there is this Hicksian situation of 
floor-ceiling, then I would conclude that a really satisfactory 
treatment would have to b e non-linear, e.g. of the type 
of Goodwin¢ theory 
]