Insertando las remesas en un modelo keynesiano, analizamos su impacto sobre la demanda agregada y la renta de equilibrio, demostrando que la composición de esta varía porque se produce un aumento del consumo y una contracción del sector exterior, y que su valor total se reduce por el valor de...

Remittances can have a contractive net impact on the recipient economy. In this case the effect of the sterilized intervention of the central bank in the foreign exchange market and/or the impact of stimulus policies on the autonomous demand prevent the contraction of GNP and foments the desired...

In this article we will show that independence is not enough to impose a given inflation target when the Central Bank is following a Taylor rule, moreover in such a case, the fiscal authority will be able to set a different objective from the one sought by the monetary authority. On the other...

Se analiza la política monetaria del Banco Central Europeo y su incidencia en las políticas de los países socios.

We provide a formal definition of the “liquidity trap” (LT) according to which, a LT arises if a combination of high precautionary saving, low investment and stringent conditions for access to bank credit stemming from a high degree of liquidity preference make the sum of the “neutral”...

The main purpose of the study is to test empirically the theoretical controversy between the so-called "accommodationist" and "structuralist" approaches in the context of the endogenous money hypothesis. The former is usually summarised as stating that the determination of the money supply is...

The literature that addresses the effects on the level of aggregate demand of changes in the degree of monopoly typically assumes away the existence of an “inflation barrier” and an inflationtargeting central bank. The presence of these two institutional factors entails that any aggregate...

The aggregate supply and demand model (AS-AD) posited by Keynes in the General Theory and elaborated by Weintraub and Davidson is analysed by inserting a CES production function. We perform a comparative statics analysis where the effects on the equilibrium level of employment and the price...

Conventional explanations of how a growing potential output generates an equi-proportional increase in aggregate demand in the long run usually rely on the real balance effect. Yet this mechanism has a negligible size and an uncertain sign. We present a theoretical framework for the analysis of...