A view on post-Keynesian interest rate policy

Georgios Argitis

European Journal of Economics and Economic Policies: Intervention, 2011, vol. 8, issue 1, 91-112

Abstract: The dominant role of the "new consensus models" in central banks’ policy-making in the last two decades has triggered the reaction of post-Keynesian economists to examine alternatives to inflation-targeting monetary strategies and to Taylor-type interest rate rules. This paper develops a simple macroeconomic model in order to pinpoint the distributional/demand effects of rentiers’ interest income in a money/debt-using and demand determined economy. The ultimate objective of this model is to provide a starting point for the development of a post-Keynesian approach to interest rate policy that differs from the "activist" and the "parking-it" approaches.

Keywords: monetary policy; interest rates; income distribution; inflation; unemployment (search for similar items in EconPapers)
JEL-codes: B22 D33 E12 E24 E31 E52 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:8:y:2011:i:1:p91-112

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