The Rate of Interest, Economic Growth, and Inflation: An Alternative Theoretical Perspective
The premise of this paper is that in a monetary production economy, policy decisions of the central bank, or more generally the ‘monetary authority’, set the tone not only for nominal interest rates but also for ‘real’ interest rates defined in the usual way. This is a different question than that of which institution(s) acquire the status of monetary authority at any particular stage of socioeconomic or technological development. Rather the suggestion is that the existence of some such social structure is a prerequisite if anything resembling capitalist monetary production is to be viable. The paper demonstrates that a coherent macroeconomic theory can be elaborated on this basis, including an explanation of economic growth, the business cycle, inflation, the functional distribution of income, the ‘Keynesian’ problem of the impact of demand growth on economic growth, endogenous money, cumulative causation, and endogenous technical change.
|Date of creation:||May 2002|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.wu.ac.at/economics/en
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rowthorn, R E, 1977. "Conflict, Inflation and Money," Cambridge Journal of Economics, Oxford University Press, vol. 1(3), pages 215-239, September.
- Kilpatrick, Andrew & Lawson, Tony, 1980. "On the Nature of Industrial Decline in the UK," Cambridge Journal of Economics, Oxford University Press, vol. 4(1), pages 85-102, March.
- Epstein,Gerald A. & Gintis,Herbert M., 2011.
"Macroeconomic Policy after the Conservative Era,"
Cambridge University Press, number 9780521148412, December.
- Epstein,Gerald A. & Gintis,Herbert M., 1995. "Macroeconomic Policy after the Conservative Era," Cambridge Books, Cambridge University Press, number 9780521462907, March.
- MacKinnon, Keith & Smithin, John, 1993. "An interest rate peg, inflation and output," Journal of Macroeconomics, Elsevier, vol. 15(4), pages 769-785.
- Tobin, James, 1972. "Friedman's Theoretical Framework," Journal of Political Economy, University of Chicago Press, vol. 80(5), pages 852-863, Sept.-Oct.
- James Tobin, 1971. "Friedman's Theoretical Framework," Cowles Foundation Discussion Papers 309, Cowles Foundation for Research in Economics, Yale University.
- John Smithin, 1997. "An Alternative Monetary Model of Inflation and Growth," Review of Political Economy, Taylor & Francis Journals, vol. 9(4), pages 395-409.
- Louis-Philippe Rochon, 1999. "Credit, Money and Production," Books, Edward Elgar Publishing, number 1565.
- Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwgee:geewp23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics)
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.