Hyman Minsky suggested a possible channel through which monetary policy could affect the economy. He asserted that rising interest rates due to contractionary monetary policy compromised the balance sheets of firms that had financed long-term positions in illiquid assets with short-term...

Keynesian models of household behavior suggest that a shift in the distribution of income toward profitsâor toward rentiersâshould imply an increase in the propensity to save out of income for the population as a whole. However, the available empirical evidence for the United States shows...