The kalecki business cycle theory is an internal theory
This business cycle is above all a process generated by the
internal strengths of the economy
Kalecki created a business cycle model which is a macro
economic model for cyclic fluctuations of economic investments
Which is the aggregate savings of Enterprises
He defined the aggregate profitability in expected future
period as a ratio between total gross profitability and the
existing capital stock
By the well known statement of launching "the tragedy of
investments" he meant that when effective investments has fallen
below the level of depreciation, then the total capital stock will
fall, which halts the decline in profitability and induces renewed
growth in investment spending which leads into a cyclic phase of
economic recovery.