All capitalist economies experience fluctuations in employment and economic activity around a long term growth rate. This book provides an explanation for this cyclical pattern of growth. The author considers whether the causes of fluctuations in output and employment are to be found outside the system or within it, and whether the long term growth rate corresponds to the growth of the labor force. Important Marxian and Keynesian insights into the growth process are confirmed within a rigorous framework of analysis that does not exclude the traditional neoclassical mechanisms.
"Peter Skott's book is an important, innovative, and extremely satisfying contribution to this literature and to the theory of economic growth and business cycles in general...While the author consciously places his contributions in the heterodox literature, the book is an equally valuable contribution to mainstream macroeconomic theory...In sum, this is a book which can be strongly recommended to all economists--neoclassical and non-neoclassical alike--interested in growth and fluctuations in capitalist economies. Moreover, graduate students with formal training in macroeconomics and political economy courses will find this book of enormous value. Not only is there much in this book to learn from; as a bonus, its crisp, clear style also makes it exceptionally pleasurable reading." The Economic Journal "One exciting development during the last decade has been the attempt to synthesize Marxian and Keynesian macroeconomics...In this short, dense, valuable book, Peter Skott contributes thoughtful discussions of many aspects of this literature, as well as a fully specified model...While the task of applying these new hybrid models to historical events remains in its infancy, Peter Skott has measurably advanced our understanding of their theoretical properties." Thomas R. Michl, Eastern Economic Journal