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Interest Rates

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Interest Rates, Income Distribution, and Monetary Policy Dominance: Post Keynesians and the "Fair Rate" of Interest Author(s): Louis-Philippe Rochon and Mark Setterfield Source: Journal of Post Keynesian Economics, Vol. 30, No. 1 (Fall, 2007), pp. 13-42 Published by: M.E. Sharpe, Inc. Stable URL: . Accessed: 28/08/2013 13:51
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Interest rates, income distribution, and monetary policy dominance: Post Keynesians and the "fair rate" of interest

In light of the growing interest in "new consensus" models,
Post Keynesian alternatives to the Taylor rule. It identifies

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distinctive approaches toPost Keynesian interestratepolicy, which we label the activist and theparking-it rules. The first approach advocates theuse of nominal
(or real) second has policy an interest or nominal) The interest approach become rate policy according Smithin rates moves as a away tool of aggregate from reaction in economic the central specific the Kansas rule. bank Three rule, demand...

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