In his Essays in the Theory of Business Cycle published in Polish in 1933, Kalecki clearly stated the principle of effective demand in mathematical form. By 1935 he outlined his theory of employment, demolished the then-orthodox remedy for a depression-that is, wage cutting-and pinpointed the importance of investment for economic dynamics.
A MACRODYNAMIC THEORY OF BUSINESS CYCLES' BY M. KALECKI Paper presented at the meeting of the Econometric Society, Leyden, October 1933. I IN the following all our considerations concern an economic system isolated and free of secular trend. Moreover, we make with respect to that system the following assumptions. 1.