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Ecological monetary economics: A post-Keynesian critique

Listed author(s):
  • Cahen-Fourot, Louison
  • Lavoie, Marc

The monetary analysis of some ecological economists currently appears to be mostly articulated around the following core: a stationary economy (and a fortiori a degrowth economy) is incompatible with a system in which money is created as interest-bearing debt. To question the relevance of the debt-money/positive interest rate/output growth nexus, this paper adopts a critical stance towards the currently emerging ecological monetary economics from the standpoint of another strand of heterodox economics – the post-Keynesian approach. In its current state, ecological monetary economics is at odds with post-Keynesian economics in its analysis of the money–growth relationship. This will be shown using the theory of endogenous money and a simple Cambridgian–Kaleckian model where debt-money and a positive interest rate are compatible with a full stationary economy.

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File URL: http://www.sciencedirect.com/science/article/pii/S0921800915300586
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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 126 (2016)
Issue (Month): C ()
Pages: 163-168

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Handle: RePEc:eee:ecolec:v:126:y:2016:i:c:p:163-168
DOI: 10.1016/j.ecolecon.2016.03.007
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  7. Jakab, Zoltan & Kumhof, Michael, 2015. "Banks are not intermediaries of loanable funds – and why this matters," Bank of England working papers 529, Bank of England.
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