A Post-Keynesian Amendment To The New Consensus On Monetary Policy
AbstractA common view is now pervasive in policy research at universities and central banks, which one could call the New Keynesian consensus, based on an endogenous money supply. This new consensus reproduces received wisdom: in the long run, expansionary fiscal policy leads to higher inflation rates and real interest rates, while more restrictive monetary policy only leads to lower inflation rates. The paper provides a simple four-quadrant apparatus to represent the above, and it shows that simple modifications to the new consensus model are enough to radically modify received doctrine as to the likely effects of fiscal and monetary policies. Copyright � 2006 The Author; Journal compilation � 2006 Blackwell Publishing Ltd.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Metroeconomica.
Volume (Year): 57 (2006)
Issue (Month): 2 (05)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hein, Eckhard & Schoder, Christian, 2009.
"Interest rates, distribution and capital accumulation: A Post-Kaleckian perspective on the US and Germany,"
IPE Working Papers
04/2009, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
- Eckhard Hein & Christian Schoder, 2011. "Interest rates, distribution and capital accumulation -- A post-Kaleckian perspective on the US and Germany," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(6), pages 693-723, November.
- Hein, Eckhard & Schoder, Christian, 2009. "Interest rates, distribution and capital accumulation – A Post-Kaleckian perspective on the US and Germany," MPRA Paper 18223, University Library of Munich, Germany.
- Kühn, Stefan & Muysken, Joan & Veen, Tom van, 2009. "The Adverse Effects of Government Spending on Private Consumption in New Keynesian Models," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Jan Korda, 2011. "Monetary Disequilibrium in the Theory of Endogenous Money," Politická ekonomie, University of Economics, Prague, vol. 2011(5), pages 680-705.
- Alberto Botta, 2011.
"Fiscal Policy, Eurobonds and Economic Recovery: Some Heterodox Policy Recipes against Financial Instability and Sovereign Debt Crisis,"
Economics and Quantitative Methods
qf1114, Department of Economics, University of Insubria.
- alberto, botta, 2011. "Fiscal policy, eurobonds and economic recovery: some heterodox policy recipes against financial instability and sovereign debt crisis," MPRA Paper 33860, University Library of Munich, Germany.
- Giuseppe Fontana & Bill Gerrard, 2006.
"The future of Post Keynesian economics,"
Banca Nazionale del Lavoro Quarterly Review,
Banca Nazionale del Lavoro, vol. 59(236), pages 49-80.
- Montes, Gabriel Caldas, 2009.
"Política monetária, inflação e crescimento econômico: a influência da reputação da autoridade monetária sobre a economia,"
Revista Economia e Sociedade,
Instituto de Economia, Universidade Estadual de Campinas (UNICAMP), vol. 37, pages 23, August.
- Gabriel Caldas Montes & Carmem Aparecida Feijó, 2007. "Política Monetária, Inflação E Crescimento Econômico: A Influência Da Reputação Da Autoridade Monetária Sobre A Economia," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 069, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Olivier Allain, 2006. "La modération salariale : le point de vue des (néo-)kaleckiens," Post-Print halshs-00196500, HAL.
- Rangan Gupta, 2011.
"Growth-Effects of Inflation Targeting: The Role of Financial Sector Development,"
Annals of Economics and Finance,
Society for AEF, vol. 12(1), pages 65-87, May.
- Rangan Gupta, 2006. "Growth-Effects of Inflation Targeting: The Role of Financial Sector Development," Working Papers 200610, University of Pretoria, Department of Economics.
- Engelbert Stockhammer & Simon Sturn, 2008.
"The Impact of Monetary Policy on Unemployment Hysteresis,"
IMK Working Paper
15-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Engelbert Stockhammer & Simon Sturn, 2012. "The impact of monetary policy on unemployment hysteresis," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2743-2756, July.
- Olivier Allain, 2006. "La modération salariale : le point de vue des (néo-)kaleckiens," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00196500, HAL.
- Alberto Botta, 2012.
"Conflicting Claims in the Eurozone? Austerity's Myopic Logic and the Need for a European Federal Union in a Post-Keynesian Eurozone Center-Periphery Model,"
Economics Working Paper Archive
wp_740, Levy Economics Institute, The.
- Alberto Botta, 2012. "Conflicting Claims in the Eurozone? Austerity’s Myopic Logic and the Need for a European Federal Union in a post-Keynesian Eurozone Center-Periphery Model," DEM Working Papers Series 011, University of Pavia, Department of Economics and Management.
- Kai D. Schmid, 2010. "Medium-run macrodynamics and the consensus view of stabilization policy," Diskussionspapiere aus dem Institut fÃ¼r Volkswirtschaftslehre der UniversitÃ¤t Hohenheim 322/2010, Department of Economics, University of Hohenheim, Germany.
- Gilberto Libanio, 2005. ""Good governance" in monetary policy and the negative real effects of inflation targeting in developing economies," Textos para DiscussÃ£o Cedeplar-UFMG td277, Cedeplar, Universidade Federal de Minas Gerais.
- Angel Asensio, 2005. "Monetary and budgetary-fiscal policy interactions in a Keynesian context: revisiting macroeconomic governance," Post-Print halshs-00139029, HAL.
- Jan Korda, 2010. "A Comparison of New Consensus as a Theoretical Framework of Inflation Targeting with Post-Keynesian Economics," Politická ekonomie, University of Economics, Prague, vol. 2010(1), pages 92-104.
- Botta, Alberto, 2012. "Conflicting Claims in Eurozone? Austerity’s Myopic Logic and the Need of a European federal union in a post-Keynesian Eurozone Center-Periphery Model," MPRA Paper 41700, University Library of Munich, Germany.
- M. Lopreite, 2012. "The endogenous money hypothesis and securitization: the Euro area case (1999-2010)," Economics Department Working Papers 2012-EP02, Department of Economics, Parma University (Italy).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.