neo-keynesian theory

["RICHARD P.F. HOLT" <holtri@xxxxxxxxxxxxx>]

According to the neo-Keynesian theory, distribution must bear the brunt of
adjusting the saving propensity of society as a whole to the incentive to
invest. Should the latter increase (decrease), giving rise to a higher
(lower) rate of accumulation, then distribution has to change to favour of
profits (wages), since the saving propensity out of profits can be assumed
to be larger than that out of wages, which will be zero.
-Heinz Kurz