IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

A Minsky-Levy-Kalecki Model

A Minsky-Levy-Kalecki Model
View Sample PDF
Author(s): Romar Correa (University of Mumbai, India)
Copyright: 2021
Pages: 15
Source title: Bridging Microeconomics and Macroeconomics and the Effects on Economic Development and Growth
Source Author(s)/Editor(s): Pantelis C. Kostis (National and Kapodistrian University of Athens, Greece)
DOI: 10.4018/978-1-7998-4933-9.ch004

Purchase

View A Minsky-Levy-Kalecki Model on the publisher's website for pricing and purchasing information.

Abstract

The authors add the monetary insights of Hyman Minsky to the ‘real' Kalecki-Levy equation. The latter is embedded in the economics of Keynes and the former is expanded in the spirit of Minsky. They present their structural connections in a four-quadrant diagram as well as within a stock-flow-consistent model. The motivation arises from history and the revitalisation of the real bills doctrine. Accordingly, they make the case for the productive monetary emissions of a central bank acting in concert with the community of commercial banks. They define money as the emission of credit in the ‘first moment' of the circuit. It is simultaneously the wage bill. Workers will consume basics and are free to prefer liquidity in the form of bank deposits. The latter they label cash or currency and a firewall separates it from money. The objective is the increase in output and employment called upon by the milieu in all countries of the world in which the 'dark forces' of uncertainty and pessimism have taken over. The policy stance is embellished by the introduction of central bank digital money.

Related Content

Kyriaki I. Kafka. © 2021. 26 pages.
Manolis Manioudis, Giorgos Meramveliotakis. © 2021. 14 pages.
Paolo Ramazzotti. © 2021. 23 pages.
Romar Correa. © 2021. 15 pages.
Georgi Marinov. © 2021. 24 pages.
Mikail Kar. © 2021. 20 pages.
Gancho Ganchev. © 2021. 25 pages.
Body Bottom