Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/59305 
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dc.contributor.authorHein, Eckharden
dc.date.accessioned2012-06-21-
dc.date.accessioned2012-06-22T11:33:36Z-
dc.date.available2012-06-22T11:33:36Z-
dc.date.issued2010-
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
dc.language.isoengen
dc.publisher|aHochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE) |cBerlinen
dc.relation.ispartofseries|aWorking Paper |x07/2010en
dc.subject.jelE12en
dc.subject.jelE25en
dc.subject.jelE43en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordinterest rateen
dc.subject.keywordhorizontalismen
dc.subject.keyworddistributionen
dc.subject.keyworddebten
dc.subject.keywordcapital accumulationen
dc.titleThe rate of interest as a macroeconomic distribution parameter: Horizontalism and Post-Keynesian models of distribution of growth-
dc.typeWorking Paperen
dc.identifier.ppn718084209en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:ipewps:072010en

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