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The key omission in this view of crises is any role for profit and profitability – which is after all the core of Marx’s analysis of capitalism – a mode of production for profit not need. Profit is missing from Keen’s analysis. Indeed, Keen considers Marx’s theory of value to be wrong or illogical, accepting the standard neo-Ricardian interpretation and Marx’s law of the tendency of the rate of profit to fall as being irrelevant to a theory of crises. Hudson has nothing to say about Marx’s key insights.
The post-Keynesians rely on the Keynes-Kalecki equation, namely that profits = investment, but it is investment that drives or creates profits, not vice versa, as Marx would have it. This view recently reached its extreme in another relatively new book, Capitalism as Oligarchy, by Jim O’Reilly, where, similar to the view of leading post-Keynesian, Engelbert Stockhammer, that is rising inequality that is decisive to crises rather than profitability of capital, O’Reilly argues that “inequality isn’t a side-effect of something we happen to call ‘capitalism’ but is rather the core of what the system is”.
full: https://thenextrecession.wordpress.com/2017/05/29/excessive-credit-rentier-capital-and-crises/
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