Income distribution, inflation and economic growth: A post-Keynesian approach
In: Panoeconomicus: naučno-stručni časopis Saveza Ekonomista Vojvodine ; scientific-professional journal of Economists' Association of Vojvodina, Band 66, Heft 3, S. 277-306
ISSN: 2217-2386
The dispute between social classes for fractions of income was a central
theme for economic analysis at least since David Ricardo and Karl Marx. Its
importance as an interpretative key declined with the marginalist revolution
of the late nineteenth century and did not regain its central role in the
conventional economic approach ever since. However, its relevance was
maintained among heterodox economists such as Michal Kalecki and
reinvigorated by post-Keynesian thinking. This paper seeks to offer three
analytical contributions to the post- Keynesian literature: (1) it presents
an integrated framework on the relationship between distributive conflict,
inflation and economic growth in an open economy with government; (2) it
proposes the use of a general framework, based on liquid preference, assets
own interest rates, currency hierarchy and productivity differentials to
understand the determinants of the spot exchange rate; and (3) it suggests a
distinct monetary rule to take into account the role of interest rates on
distributive conflict inflation and demand and growth regimes.