Interest rates, income distribution and the monetary policy transmissions mechanism under endogenous money: what have we learned 30 years on from Horizontalists and Verticalists?

This paper suggests that the near-optimal setting of the real policy rate of interest (the real overnight rate in Basil Moore's home country of Canada) is zero. This will achieve as close an approximation as possible to a fair distribution of income in a particular sense. It will also promote financial stability, inflation stability, high growth, full employment and higher real wages.

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Year of publication:	2020
Authors:	Smithin, John
Published in:	European Journal of Economics and Economic Policies: Intervention (EJEEP). - ISSN 2052-7772. - Vol. 17.2020, 3, p. 381-398
Publisher:	Cheltenham : Edward Elgar Publishing
Subject:	Basil J. Moore \| endogenous money \| income distribution \| monetary policy transmissions mechanism \| zero interest rate policy (ZIRP) \| zero real policy rate (ZRPR)

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.4337/ejeep.2020.0058 [DOI] hdl:10419/277493 [Handle] RePEc:elg:ejeepi:v:17:y:2020:i:3:p381-398 [RePEc]
Classification:	B12 - Classical ; B22 - Macroeconomics ; b26 ; E13 - Neoclassical ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; E58 - Central Banks and Their Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10014363399