We develop a post-Keynesian macrodynamic model of productive capacity utilization and income distribution in which the supply of credit-money is endogenous. Nominal interest rate is set by banks as a markup over the base rate, which is exogenously determined by the monetary authority. Over time,...

This paper develops a post-Keynesian dynamic model of capacity utilisation and growth, in which the supply of credit-money is endogenous and firms' debt position-and thus the financial fragility of the economy agrave; la Hyman Minsky-is explicitly modelled. The interest rate is set by banks as a...

This paper argues that in developing countries, higher real wages---up to a certain critical point---may enhance the ability of workers to learn from and improve on foreign technology, with positive effects on international competitiveness and on the rate of economic growth consistent with...