Fiche du document
8 mars 2019
- handle: 10670/1.5kmoav
- halshs: halshs-01231469
info:eu-repo/semantics/OpenAccess
Mots-clés
Accommodationism Credit-money Endogenous money Horizontalism Interest rate Liquidity preference Monetary policy Verticalism Structuralism E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E40 - General E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E43 - Interest Rates: Determination, Term Structure, and Effects E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E44 - Financial Markets and the Macroeconomy E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and CreditSujets proches
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Angel Asensio, « Endogenous interest rate with accommodative money supply and liquidity preference », HALSHS : archive ouverte en Sciences de l’Homme et de la Société, ID : 10670/1.5kmoav
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Résumé
The paper offers theoretical discussion and modelling showing that -in accordance to the post Keynesian approach to endogenous money- the credit-worthy demand for loans determines the supply of loans at the prevailing interest rate, while -in accordance with Keynes's liquidity preference theory- the rate of interest is endogenously determined as to equalize the demand and supply of liquidity-money in terms of stocks. As a consequence, the markup reflected in the spread between the central bank refinancing interest rate and the market interest rate is endogenously determined by the total demand and supply of liquidity-money. The paper also argues that, while the central bank effectively controls the base interest rate, additional conditions are required to control the liquidity-money market interest rate, owing to the conventional nature of the rate of interest Keynes pointed out.