An endogenous growth model with endogenous money supply. Integration of post-Keynesian growth model
DOI:
https://doi.org/10.13133/2037-3643/10572Keywords:
Endogenous money supply, Endogenous growth, fiscal and monetary policyAbstract
The work attempts to integrate the growth models by authors such as Kalecki, Harrod, Robinson and Kaldor, together with an introduction on monetary aspects, based on the endogenous money supply theory. A short-run income determination model is presented and then extended to a long-run model without assuming full employment. The steady growth rate is then investigated before dynamic aspects of the model are studied and fiscal and monetary policies are examined within a dynamic growth process. Phase diagrams for growth models are employed to to offer an explanation for the effects of short-run demand-control policies. The most important difference from previous works is the explicit introduction of a financial sector functioning as an inflation barrier.
JEL Codes: E12
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