 Interest Rate, Distribution and Capital Accumulation — Post-Keynesian Models: Introduction to Part IIChapter 8 in Money, Distribution Conflict and Capital Accumulation, 2008, pp 61-62 from Palgrave Macmillan Abstract: Abstract In the second part of the book we will analyse the relationship between the monetary interest rate, functional income distribution and capital accumulation in more detail. The analysis will be based on Post-Keynesian approaches to distribution and growth. We will develop a basic model in which the long-run distribution and accumulation effects of monetary policies can be analysed and different variants of Post-Keynesian models can be compared. Following Post-Keynesian monetary theory, but also the Neo-Ricardian monetary theory of distribution and Marx’s monetary analysis, all of them outlined in the first part of the book, we will consider the interest rate as an exogenous variable for the processes of income generation and accumulation which is mainly controlled by the policies of the central bank. The volume of credit and the quantity of money are endogenous with respect to production, capital accumulation and growth. Money and credit are generated by the interaction of the central bank, commercial banks, firms and private households. Keywords: Interest Rate; Monetary Policy; Central Bank; Capital Stock; Capital Accumulation (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59560-6_8 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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