IDEAS home Printed from https://ideas.repec.org/a/elg/rokejn/v4y2016i2p201-207.html
   My bibliography  Save this article

Keen on endogenous money and effective demand: a further comment

Author

Listed:
  • Severin Reissl

    (Kingston University, Kingston upon Thames, UK)

Abstract

This article comments on Steve Keen's rebuttal in which he replies to the critiques of his recent paper restating the argument that 'effective demand equals income plus the change in debt'. Building on a critique of Keen's original paper by the present author, it is argued that in using an alternative way to derive his statement, Keen modifies his hypothesis to the point of turning it into an outright tautology which, importantly, was not the case previously. While he thus indeed arrives at a relationship which necessarily holds, this contains no novel insight and does not justify his strong claims regarding any necessary relationship between changes in debt and effective demand. This paper also comments on Keen's peculiar views on the loanable funds model which appear to lie at the root of his hypothesis.

Suggested Citation

  • Severin Reissl, 2016. "Keen on endogenous money and effective demand: a further comment," Review of Keynesian Economics, Edward Elgar Publishing, vol. 4(2), pages 201-207, April.
    • Handle: RePEc:elg:rokejn:v:4:y:2016:i:2:p201-207
    as

    Download full text from publisher

    File URL: http://www.elgaronline.com/abstract/journals/roke/4-2/roke.2016.02.05.xml
    Download Restriction: Restricted access
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Antonin Pottier & Adrien Nguyen-Huu, 2017. "Debt and investment in the Keen model: a reappraisal of modelling Minsky," Review of Keynesian Economics, Edward Elgar Publishing, vol. 5(4), pages 631–647-6, October.

    More about this item

    Keywords

    effective demand; endogenous money; debt;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:rokejn:v:4:y:2016:i:2:p201-207. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Phillip Thompson (email available below). General contact details of provider: http://www.elgaronline.com/roke .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.