4.Conclusions

Thus far, we built a dynamical model that reflects Keynes'effective demand principle via a simple Robinsonian animal spirits investment function, combined with KeynesWicksell adjustment process.We summarize the economic implication of our three propositions.

If the adjustment speed of prices in the product market is sufficiently fast compared to that of money wages in the labour market, irrespective of external parameters such as the rate of savings and the pattern of the production function, the path with is not asymptotically stable.Furthermore, a dynamically stable steady state growth path with full employment is, if ever it exists, is only the path that guarantees s cr=n（Pasinetti's theorem）.Conversely, if the adjustment speed in the product market is relatively slow, the dual theorem is true, depending on external parameters and the pattern of the production function.