SEMAINE D'ÉTUDE SUR LE ROLE DE L'ANALYSE ECONOMETRIQUE ETC. 
603 
We may notice that (II.20), like (II.5), is a macro-economic 
condition: the whole national income must be spent, if full 
employment is to be reached. On the other hand, (II.21) re- 
presents a series of sectoral conditions: there is one condition 
for each sector. Each sector : must be endowed with that stock 
of productive capacity which is necessary to produce the amount 
of commodity ¢ which is demanded. 
At this point, one may wonder what would happen if (II.20)- 
‘IT.21) were not satisfied. It clearly depends on how the non- 
fulfilment comes about. A few interesting cases may perhaps 
be usefully considered. Inequalities of type (I1.18) plus the left 
hand side of (IT.20) being lower than its right hand side mean 
idle capacity and less than full empoyment: a situation which 
we may call one of Keynesian under-employment (7). On the 
other hand, inequalities of type (II.1g) again plus the left- 
hand side of (II.20) lower than its right hand side correspond 
‘0 a situation in which the capital structure is smaller than the 
one which would make full employment possible: a situation 
which may be called one of Marxian under-employment. The 
‘wo opposite cases as to condition (IT.20) represent situations 
of inflation of different types. due respectively to lack of labour 
and to lack of capital. 
A further question that may arise at this point is the follow- 
ng: if any of these cases, or if any other situation takes place, 
in which (IT.20) and (II.21) are not satisfied. how is the svstem 
(7) Of course, Keynes had a behavioural theory about this situation, 
vith reference to a capitalist economic svstem. In terms of the present 
nodel. KevyNEs’ theorv was that, for psychological reasons. 
a. a. < i 
namely that total demand for consumer goods on the whole tends to be 
smaller than full employment income. Of course demand for investment 
goods might be such a proportion of total income as to make up for the 
difference to unity in the inequality stated above. But KEevNEs pointed 
out that there is no reason to necessarily expect this, because the two types 
bf demand depend on different factors. As is well known, he thought that 
in fact the most likely situation to arise is one in which there is lack nf 
~ffective demand and excess of productive capacity. 
‘Io] Pasinetti - pag. +3