Long period interest rate rules in a demand-led Kaldor-Pasinetti-Sraffa- Keynes growth model

Publication Type:
Journal Article
Journal of Post Keynesian Economics, 2012, 34 (3), pp. 521 - 546
Issue Date:
Filename Description Size
Thumbnail2011004720OK.pdf1.37 MB
Adobe PDF
Full metadata record
This paper uses a detailed macroeconomic model characterized by demand-led growth, Sraffian pricing, and the Kaldor-Pasinetti analysis of income distribution at the macrolevel to develop a framework for evaluation of the long-term implications of monetary policy. Focus is placed on the development of interest rate rules that ensure balanced long-run growth with either stable observable unemployment or zero or low underlying unemployment, and comparison is made between these rules and other Post Keynesian policy rules. Strong support is provided for the effectiveness of the Smithin rule, which fixes the real rate of interest although an alternative rationale for this rule is provided. © 2012 M.E. Sharpe, Inc.
Please use this identifier to cite or link to this item: