EFFECTIVE DEMAND, CLASS STRUGGLE AND CYCLICAL GROWTH.

The paper presents a simple model of growth and accumulation in a pure capitalist economy. The model integrates Keynesian ideas on effective demand with a Marxian emphasis on class struggle and the reserve army of labour. For reasonable parameter values the model has a unique (non-trivial) balanced growth equilibrium, the equilibrium is unstable and using the PoincareBendixson theorem it is shown that the economy will exhibit perpetual fluctuations around the balanced growth path. [ABSTRACT FROM AUTHOR]