Cycles of Demand and Distribution and Monetary Policy in the US Economy

Rezai, Armon (2013) Cycles of Demand and Distribution and Monetary Policy in the US Economy. Journal of Post Keynesian Economics, 36 (2). pp. 231-250. ISSN 1557-7821


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The role of monetary policy on the cyclical behavior of the labor share and capacity utilization in the US economy is studied empirically. Previous estimation results remain robust; the inclusion of the rate of interest does not alter the underlying specification of the distributive demand regime. Next, the role of monetary policy on net borrowing flows for four institutional sectors are analyzed. Interest rate effects appear most important for households. Based on this finding, implications for countercyclical stabilization policy are spelled out. (author's abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Keywords: Effective Demand / Income Distribution / Monetary Policy / Structuralist Macroeconomics
Classification Codes: JEL B500, E110, E120, E320
Divisions: Departments > Sozioökonomie > Multi-Level Governance and Development > Wirtschaft und Umwelt
Version of the Document: Accepted for Publication
Depositing User: ePub Administrator
Date Deposited: 25 Nov 2013 10:23
Last Modified: 29 Nov 2017 18:30
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