TY - JOUR
T1 - Credit Money and Kaldor's 'Institutional' Theory of Income Distribution
AU - Park, Man Seop
N1 - Funding Information:
The author wishes to thank his research assistant, Mr Soon Ryoo, who not only provided the solutions of the systems of equations proposed in the text (the solutions are available from the author) but also made some stimulating suggestions to improve the paper. The comments of two anonymous referees are also gratefully acknowledged. This work was supported by Korea Research Foundation Grant (KRF–2000–003–C00214).
PY - 2004/1
Y1 - 2004/1
N2 - This paper combines two major contributions by Kaldor: the view that the supply of money, ensuing mainly from bank credit, is endogenous, and the framework which assigns a crucial role to the saving and investment behaviour of corporations in determining the general rate of profit (the neo-Pasinetti theorem). Bank loans are introduced as another means of financing investment by firms, in addition to retained profits and the new issuance of shares. The proposed model provides a convenient framework in which two different approaches in the money-endogeneity view are classified. Kaldor's neo-Pasinetti theorem is shown to hold for only one of these approaches and is then extended to include the influence of banks.
AB - This paper combines two major contributions by Kaldor: the view that the supply of money, ensuing mainly from bank credit, is endogenous, and the framework which assigns a crucial role to the saving and investment behaviour of corporations in determining the general rate of profit (the neo-Pasinetti theorem). Bank loans are introduced as another means of financing investment by firms, in addition to retained profits and the new issuance of shares. The proposed model provides a convenient framework in which two different approaches in the money-endogeneity view are classified. Kaldor's neo-Pasinetti theorem is shown to hold for only one of these approaches and is then extended to include the influence of banks.
UR - http://www.scopus.com/inward/record.url?scp=0842285910&partnerID=8YFLogxK
U2 - 10.1080/0953825032000145472
DO - 10.1080/0953825032000145472
M3 - Review article
AN - SCOPUS:0842285910
SN - 0953-8259
VL - 16
SP - 79
EP - 99
JO - Review of Political Economy
JF - Review of Political Economy
IS - 1
ER -