EconStor >
Bard College, Annandale-on-Hudson (NY) >
Levy Economics Institute of Bard College >
Working Papers, Levy Economics Institute of Bard College >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/31588
  
Title:Prolegomena to realistic monetary macroeconomics: a theory of intelligible sequences PDF Logo
Authors:Godley, Wynn
Lavoie, Marc
Issue Date:2006
Series/Report no.:Working papers // The Levy Economics Institute 441
Abstract:This paper sets out a rigorous basis for the integration of Keynes-Kaleckian macroeconomics (with constant or increasing returns to labor, multipliers, mark-up pricing, etc.) with a model of the financial system (comprising banks, loans, credit money, equities, etc.), together with a model of inflation. Central contentions of the paper are that, with trivial exceptions, there are no equilibria outside financial markets, and the role of prices is to distribute the national income, with inflation sometimes playing a key role in determining the outcome. The model deployed here describes a growing economy that does not spontaneously find a steady state even in the long run, but which requires active management of fiscal and monetary policy if full employment without inflation is to be achieved. The paper outlines a radical alternative to the standard narrative method used by post-Keynesians as well as by Keynes himself.
Subjects:Stocks and Flows
Social Accounting Matrices (SAM)
Monetary Macroeconomics
Post-Keynesian Models
JEL:E12
E17
E25
Document Type:Working Paper
Appears in Collections:Working Papers, Levy Economics Institute of Bard College

Files in This Item:
File Description SizeFormat
508794765.pdf325.28 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/31588

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.