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- Title
Rate of profit and interest in a growth theory with endogenous money.
- Authors
Kurose, Kazuhiro
- Abstract
This paper attempts to incorporate an endogenous money approach into post-Keynesian growth theory in order to derive the full employment equilibrium rate of interest as well as that of profit. This rate of interest, named the ideal rate of interest, differs from the rate of profit in that it is in proportion to a monetary variable, not a real variable. Further, the rate of profit also differs from the rate of interest as a premium because it is productive. The rate of interest could be important in explaining circumstances in which financial capital has been accumulated in excess.
- Subjects
FULL employment policies; LABOR productivity; PROFIT; INTEREST rates; ECONOMIC equilibrium; ECONOMICS
- Publication
Cambridge Journal of Economics, 2004, Vol 28, Issue 6, p889
- ISSN
0309-166X
- Publication type
Article
- DOI
10.1093/cje/beh041