Hungarian-born British economist and special adviser 1964–68 and 1974–76 to the UK government. Kaldor was a firm believer in long-term capital gains tax and selective employment tax, and a fierce critic of the economic policy of monetarism. He advised the governments of several countries in the developing world on economic and tax reform. His contributions to theory range from welfare economics to capital theory, business cycle theory, and the theory of economic growth. His contributions to applied economics range from tariff policy to taxation policy, monetary policy and international commodity stabilisation, centering on his proposal of a comprehensive ‘expenditure tax’ to replace the existing system of taxation.
In the 1930s, Kaldor was a key expounder of Keynesian economics; the economic theory developed by English economist John Maynard Keynes. After World War II he moved towards a theory of export-led economic growth founded on his interpretation of Keynes' theories. Kaldor wrote only two books, An Expenditure Tax (1955) and The Scourge of Monetarism (1982), but his output of papers, reports, and memoranda ran to nine volumes (1960, 1964, 1978, 1979, 1980, 1989). He was knighted in 1974.
Kaldor was born in Budapest, Hungary. After a year at the University of Berlin, Germany, he moved to Britain in 1927 to study at the London School of Economics (LSE), London, England, from which he graduated in 1930. Two years later, he joined the staff at the LSE, leaving in 1947 to become director of the Research and Planning Division of the Economic Commission for Europe. He also contributed to the influential United Nations, ‘National and International Measures for Full Employment’ (1949). He returned to academic life as a fellow at King's College, Cambridge, England, in 1949, becoming a reader in 1952 and a professor of Economics in 1966. He retired from academic life in 1975.
Throughout his latter period at Cambridge, he also served as tax adviser to the governments of India, Sri Lanka, Mexico, British Guiana, Turkey, Iran, Venezuela, and Ghana. He was also special adviser to the chancellor of the Exchequer of two British Labour governments 1964–68 and 1974–76. Among his contributions to the economic policies of the Labour government was the Selective Employment Tax, a payroll tax designed to discriminate in favour of the manufacturing sector of the British economy.
Related Credo Articles
British (Hungarian-born) economist Dixon Robert Anthony P. Thirlwall , “A Model of Regional Growth-Rate Differences on...
An economic theory, created by John Maynard Keynes, that advocates governments becoming involved in the markets and economy in order to...
The economic theory of English economist John Maynard Keynes, which argues that a fall in national income, lack of demand for goods, and rising unem