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dc.contributor.authorHein, Eckharden_US
dc.date.accessioned2012-06-21en_US
dc.date.accessioned2012-06-22T11:33:36Z-
dc.date.available2012-06-22T11:33:36Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/59305-
dc.description.abstractWe review the main arguments put forward against the horizontalist view of endogenous credit and money and an exogenous rate of interest under the control of monetary policies. We argue that the structuralist arguments put forward in favour of an endogenously increasing interest rate when investment and economic activity are rising, due to increasing indebtedness of the firm sector or decreasing liquidity in the commercial bank sector, raise major doubts from a macroeconomic perspective. This is shown by means of examining the effect of increasing capital accumulation on the debt-capital ratio of the firm sector in a simple Kaleckian distribution and growth model. In particular we show that rising (falling) capital accumulation may be associated with a falling (rising) debt-capital ratio for the economy as a whole and hence with the 'paradox of debt'. Therefore, the treatment of the rate of interest as an exogenous macroeconomic distribution parameter in Post-Keynesian distribution and growth models seems to be well founded.en_US
dc.language.isoengen_US
dc.publisherInst. for International Political Economy Berlinen_US
dc.relation.ispartofseriesWorking Paper, Institute for International Political Economy Berlin 07/2010en_US
dc.subject.jelE12en_US
dc.subject.jelE25en_US
dc.subject.jelE43en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordinterest rateen_US
dc.subject.keywordhorizontalismen_US
dc.subject.keyworddistributionen_US
dc.subject.keyworddebten_US
dc.subject.keywordcapital accumulationen_US
dc.titleThe rate of interest as a macroeconomic distribution parameter: Horizontalism and Post-Keynesian models of distribution of growthen_US
dc.typeWorking Paperen_US
dc.identifier.ppn718084209en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:ipewps:072010-
Appears in Collections:IPE Working Papers, Institute for International Political Economy, HWR Berlin

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