Books reviewed: Davidson, Paul (2007): John Maynard Keynes, London/New York Godley, Wynne / Lavoie, Marc (2007): Monetary Economics. An Integrated Approach to Credit, Money, Income, Production and Wealth, Houndmills et al. McCombie, John / Rodriguez Gonzales, Carlos (eds.)(2007): The European...

We consider a Keynes-Goodwin model of effective demand and the distributive cycle where workers purchase goods and houses with a marginal propensity significantly larger than one. They therefore need credit, supplied from asset holders, and have to pay interest on their outstanding debt. In this...

We present a simple macrodynamic model of the real-financial markets inter action with a dynamic multiplier representing the goods market and a structured portfolio choice between money holdings and equities. This is contrasted with Blanchard's (1981) alternative approach, where interest-bearing...