Abstract
This is by far the most ambitious chapter of the book. It sets out a rigorous basis for the integration of Keynesian-Kaleckian macroeconomics (with constant or increasing returns to labour, growth, mark-up pricing, etc.) with a model of the financial system comprising banks, loans, credit money and equities, together with a model of inflation. Central contentions of the chapter are that, with trivial exceptions, there are no equilibria outside financial markets and that the role of prices is to distribute the national income, with inflation sometimes playing a key role determining the outcome.
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© 2012 Wynne Godley and Marc Lavoie
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Godley, W., Lavoie, M. (2012). A Growth Model Prototype. In: Monetary Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-08599-3_11
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DOI: https://doi.org/10.1007/978-1-137-08599-3_11
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-30184-9
Online ISBN: 978-1-137-08599-3
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