Keynes’ Multiplier and the Accelerator Principle and the Indian Economic Thought: Thirukkural
11 Pages Posted: 29 Jun 2009
Date Written: June 22, 2009
The principles of income multiplier and the investment 'accelerator' play important role in determining the national income. This paper attempts to highlight that the ideas contained in Keynes' Multiplier and the Accelerator Principle are found in an Indian economic thought - Thirukkural, and that these concepts were recognized as of much significance for the sustenance and growth of any economy. This paper also implies a sketchy model of the theory of income in the lines of John Maynord Keynes and also highlights the recognition and theorizing the concepts like income multiplier and investment accelerator much before Keynes that is just 2000 years ago!
Keywords: Multiplier, Accelerator, Keynes theory, Income determination, Thirukkural, Indian Economic thought
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