Monetary policy in the unique growth cycle of post Keynesian systems

Hiroki Murakami ()

Structural Change and Economic Dynamics, 2020, vol. 52, issue C, 39-49

Abstract: This paper deals with the following two issues in a post Keynesian system: the existence and uniqueness of a growth cycle and the effectiveness of a counter-cyclical monetary policy for stabilization. It is found that the unique growth cycle, represented by the unique limit cycle, can be observed if the rate of interest is set to a constant level while that the long-run equilibrium can be globally asymptotically stable if an appropriate counter-cyclical monetary policy is conducted.

Keywords: Economic stability; Growth cycle; Keynesian economics; Monetary policy (search for similar items in EconPapers)
JEL-codes: C62 E12 E32 E52 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:52:y:2020:i:c:p:39-49

DOI: 10.1016/j.strueco.2019.10.002

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