Subsistence Wages, Private Indebtedness and Aggregate Demand＂ A Post Keynesian Classical Interpretation of the Current Crisis

This paper aims at providing an interpretation of economic crises within a theoretical framework where some elements of classical political economy are superimposed on the theoretical framework of the monetary theory of production. The dynamics of wages, of conspicuous consumption on the part of rentiers and of investments are taken into consideration, in order to show that economic crises largely depend on the combination of declining wage shares, increasing financial rents and the reduction of investments.