The paper suggests an alternative 'benchmark' model or 'microfoundations' for theorising about macroeconomic phenomena in the case of competitive equilibria. This alternative reflects a classical-Sraffian explanation of relative prices. This approach also provides a coherent framework for the...

This paper reappraises sustainable trajectories of public debt and fiscal balance, with particular reference to the possible relations between the interest rate on debt and the growth rate of the economy. From the standpoint of the approach to the theory of interest proposed by Keynes--and, in a...