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Romar Correa - Loanable funds, liquidity preference: structure, past and present
jpe:10586 - Journal of Philosophical Economics, November 20, 2009, Volume III Issue 1 - https://doi.org/10.46298/jpe.10586Loanable funds, liquidity preference: structure, past and presentArticle
We appraise the canonical RobertsonKeynes discussion from the structural axis of exogeneity/endogeneity of the interest rate. The interest rate is shown to be an exogenous variable. It is only with Keynes' contribution of liquidity preference and, specifically, the introduction of the liquidity preference of banks that no more than the possibility of endogenising the interest rate arises. Given the tenuousness of the resolution, we pose the ethical question: should the rate of interest be endogenised? On the other hand, Keynes' theorem that the rate of interest is a monetary variable is validated. Both money and the rate of interest are codetermined in a capitalist economy.
Source: HAL:hal-03704527v1
Volume: Volume III Issue 1
Section: Articles
Published on: November 20, 2009
Imported on: December 28, 2022
Keywords: [SHS]Humanities and Social Sciences
Classifications
JEL Classification System1
- E43 - Interest Rates: Determination, Term Structure, and Effects
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