Finance, Monetary Policy and Investment

Georgios Argitis

No 309, Working Papers from University of Crete, Department of Economics

Abstract: In this paper we attempt to develop some basic lines of a political economy perspective of the impact of finance and monetary policy on investment. We argue that the structure of capital, particularly the type of the relation between the industrial and the financial sector determines, to an extent, the way that finance affects investment. The domain in which this effect takes place is the distribution of income. Hence, this perspective integrates financial and real variables and argues that their interaction, which is institutionally and historically defined, acts as a main source of influence on investment and industrial accumulation in capitalism. Yet, we econometrically estimate some of our fundamental hypotheses, using data from the USA.

Keywords: Finance; Monetary Policy; Credit; Income Distribution; Investment (search for similar items in EconPapers)
JEL-codes: B22 E11 E12 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-fdg, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:crt:wpaper:0309

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