KALECKI‘S MODEL OF BUSINESS CYCLE: EXISTENCE AND APPROXIMATION OF SOLUTION

In 1935, Michał Kalecki [1] developed the first clear and mathematically precise model of macroeconomic dynamics. Kalecki added an important real-world feature: the implementation lag (or gestation period) the time delay between deciding to invest and the new productive capacity becoming available. Our goal through current paper is to determine necessary conditions for model’s solution existence and its approximation.