Revize monetárního modelu Marca Lavoieho endogenizací parametru gama

Zdeněk Chytil and Lukáš Máslo

Politická ekonomie, 2016, vol. 2016, issue 2, 209-217

Abstract: Revision of Marc Lavoie's Monetary Model by the Endogenization of the Parameter γ This paper tries to point out a fallacy in Lavoie's (2006) conclusion that incorporation of deep endogeneity of parameters into the PKA model suffices to bring about irreversibility of such a system. The arguments of the authors are supported by Setterfield's (1998a, 2008) concept of hysteresis as path-dependence in the long-run outcome of systems with direct shocks. The paper shows that extension of Lavoie's PKA model by deep endogeneity of the parameter γ causes the fulfillment of the necessary condition of hysteresis - Setterfi eld's condition (a) ensuring deep endogeneity of the alleged exogenous parameter and, by means of this, path dependence in the long-run output - but not the fulfi llment of the sufficient condition of hysteresis - condition (c) ensuring the presence of adjustment asymmetry and, by means of this, irreversibility. Thus, deependogenisation of the parameter γ does not bring about Setterfi eld's hysteresis and, in effect, does not cause irreversibility.

Keywords: Post-Keynesian economics; new consensus; monetary policy; irreversibility; hysteresis; deep endogeneity (search for similar items in EconPapers)
JEL-codes: B59 C69 D59 E59 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.18267/j.polek.1065

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