Abstract
Do interest rates reflect the state of the economy, or is it rather the opposite? Why do we need interest rates in the first place? Why are there so many interest rates in modern economies? To what extent can Central Banks determine these rates? Do interest rates variations influence credit creation in the economy? How do the main monetary aggregates vary following changes in monetary policy? What is the role of investors’ expectations in this complex process? Such are some of the questions covered in this chapter.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
This calculation can easily be done in Excel (using the ‘irr’ function).
References
Dow, A. C., & Dow, S. C. (1989). Endogenous money creation and idle balances. In Pheby, J., (ed), New Directions in Post-Keynesian Economics, Aldershot, UK and Brookfield, (pp. 147–64). VT, USA: Edward Elgar.
Federal Reserve Open Market Committee. (2019). meeting minutes, January 2019.
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. Wordsworth Classics of World Literature, UK.
Lavoie, M. (2015). Post-keynesian economics: new foundations. Edward Elgar Publishing. Cheltenham, UK, Northampton, MA, USA.
Moore, B. J. (1988). Horizontalists and Verticalists: the Macroeconomics of Credit Money. Cambridge: Cambridge University Press.
Palley, T. I. (1994). Competing views of the money supply process: Theory and evidence. Metroeconomica 45(1), February, 67–88.
Pasinetti, L. L. (1981). Structural Change and Economic Growth. Cambridge: Cambridge University Press.
Skidelski, R. (1992). John Maynard Keynes, Volume II, The Economist as Saviour, 1920–1937. London: MacMillan, UK.
Smithin, J. (1996). Macroeconomic Policy and the Future of Capitalism: the Revenge of the Rentiers and the Threat to Prosperity. Cheltenham, UK and Northampton, MA, USA: Edward Elgar.
Spencer, M. (2017). Introduction to Keynes J. M. (1936). General Theory of Employment, Interest and Money. Wordsworth Classics of World Literature, UK.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Lagoarde-Segot, T. (2023). Endogenous Money, Liquidity Preference and Interest Rates. In: Lagoarde-Segot, T. (eds) Ecological Money and Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-14232-1_5
Download citation
DOI: https://doi.org/10.1007/978-3-031-14232-1_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-031-14231-4
Online ISBN: 978-3-031-14232-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)