Showing 1 - 10 of 17,576
principles of post-Keynesian endogenous money theory. This paper argues that the most important critical component of post …-Keynesian monetary theory today is its rejection of the “natural rate of interest.” By examining the hidden assumptions of the loanable … interest version of the loanable funds theory, it quickly becomes clear that Minsky does not fall into the loanable funds camp …
Persistent link: https://www.econbiz.de/10013045724
of Post Keynesian Economics regarding the relationship between endogenous money theory and the liquidity preference … theory of the rate of interest. We incorporate Asensio's assumptions as far as possible and use simulation experiments to …
Persistent link: https://www.econbiz.de/10011924796
Keynesian case against the classical one. The "lowflation" environment experienced in the USA and Europe again brought the LT to … the forefront. The quantitative easing monetary policy was introduced in Japan and better applied in the USA and EMU as a … transformation of the monetary base into money supply. To prove our thesis, we study the behavior of the USA money multiplier and the …
Persistent link: https://www.econbiz.de/10012177015
principles of post-Keynesian endogenous money theory. This paper argues that the most important critical component of post …-Keynesian monetary theory today is its rejection of the "natural rate of interest." By examining the hidden assumptions of the loanable … interest version of the loanable funds theory, it quickly becomes clear that Minsky does not fall into the loanable funds camp. …
Persistent link: https://www.econbiz.de/10010412398
Theory offered a rich analysis of the problems that appear at the zero lower bound and advocated the very same unconventional …
Persistent link: https://www.econbiz.de/10013043746
Does fiscal policy have qualitatively different effects on the economy in a liquidity trap? We analyze a nonlinear stochastic New Keynesian model and compare the true and loglinearized equilibria. Using the loglinearized equilibrium conditions, the answer to the above question is yes. However,...
Persistent link: https://www.econbiz.de/10009513278
I develop a model that explicitly takes the role of financial institutions in the transmission mechanism of monetary policy into account. Within this model, I find various equilibrium environments, with one of them resembling a standard environment for monetary policy and another one akin to a...
Persistent link: https://www.econbiz.de/10012052588
I develop a new monetarist model to analyze why an economy can fall into a liquidity trap, and what the effects of unconventional monetary policy measures such as helicopter money and negative interest rates are under these circumstances. I find that liquidity traps can be caused by a decrease...
Persistent link: https://www.econbiz.de/10011790397
This paper revisits how coexistence of money and bonds can make a society better off. For this purpose, a model is constructed in which payment instruments matter for settling real transactions and savings instruments matter because agents differ in how they discount future utility. Because...
Persistent link: https://www.econbiz.de/10013218661
We propose a new interest rate rule that implements the optimal equilibrium and eliminates all indeterminacy in a canonical New Keynesian model in which the zero lower bound on nominal interest rates (ZLB) is binding. The rule commits to zero nominal interest rates for a length of time that...
Persistent link: https://www.econbiz.de/10011346620