Distribution Conflict, Inflation and Monetary Policy in a Credit Economy: Introduction to Part III

Eckhard Hein

Chapter 15 in Money, Distribution Conflict and Capital Accumulation, 2008, pp 131-132 from Palgrave Macmillan

Abstract: Abstract In the third part of the book we will introduce the inflationary consequences of distribution conflict and monetary policy reactions fighting inflation acceleration, omitted in the previous part, into the monetary Kaleckian distribution and growth models developed in chapter 13, the extended Rowthorn-Dutt-Amadeo model and the extended Bhaduri/Marglin model. In undertaking this analysis, we shall address and clarify two important problems in Kaleckian models: First, which is the role of an ‘inflation barrier’ or a ‘Non-Accelerating Inflation Rate of Unemployment’ (NAIRU) in these kind of models and how are these models related to modern mainstream macroeconomic New Consensus models which are built on the notion of a NAIRU determining long-run equilibrium unemployment? Secondly, how can we cope with the possibility of a deviation of the long-run equilibrium rate of capacity utilization from the ‘normal rate’ of utilization conceived by firms when planning new investment in capital stock? Can the main results of the Kaleckian models, the ‘paradox of thrift’ and at least the possibility of a ‘paradox of costs’, be sustained if this problem is addressed? And how are the results of the Kaleckian distribution and growth models related to orthodox Classical and Marxian results?

Keywords: Monetary Policy; Capital Stock; Real Interest Rate; Capacity Utilization; Consensus Model (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59560-6_15

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230595606

DOI: 10.1057/9780230595606_15

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().