Thursday , March 28 2024
Home / Sergio Cesaratto: Politica and EconomiaBlog / La macroeconomia dopo la moneta endogena (Wonkish)

La macroeconomia dopo la moneta endogena (Wonkish)

Summary:
Appena pubblicato sui Working papers di Siena Bofinger and Ries versus Borio and Disyatat: macroeconomics after endogenous money. A brief note. Sergio Cesaratto Abstract A paper by Peter Bofinger and Mathias Ries (2017a/b) strays from the recent rethinking in monetary analysis to criticise Summers’ “saving glut” explanation of the prevalence of low real interest rates. A similar critical perspective is held by Borio and Disyatat (e.g. 2011a/b, 2015), who are criticised, however, by Bofinger and Reis for their Wicksellian background. In this note, we compare and assess these two different views. Both Bofinger and Reis (B&R) and Borio and Disyatat (B&D) reject traditional “loanable fund theory” in favour of an endogenous money view of credit, but while B&R regard conventional

Topics:
Sergio Cesaratto considers the following as important: , , , , , , ,

This could be interesting, too:

Matias Vernengo writes Was Keynes a Liberal or a Socialist?

Matias Vernengo writes The problem with Keynes’ General Theory: by Tom Palley

Matias Vernengo writes Review of Crotty’s “Keynes Against Capitalism” (forthcoming in ROKE)

Matias Vernengo writes Kalecki’s alternative to Keynes and White and its consequences



Appena pubblicato sui Working papers di Siena
Bofinger and Ries versus Borio and Disyatat: macroeconomics after endogenous money. A brief note.
Sergio Cesaratto

Abstract
A paper by Peter Bofinger and Mathias Ries (2017a/b) strays from the recent rethinking in monetary analysis to criticise Summers’ “saving glut” explanation of the prevalence of low real interest rates. A similar critical perspective is held by Borio and Disyatat (e.g. 2011a/b, 2015), who are criticised, however, by Bofinger and Reis for their Wicksellian background. In this note, we compare and assess these two different views. Both Bofinger and Reis (B&R) and Borio and Disyatat (B&D) reject traditional “loanable fund theory” in favour of an endogenous money view of credit, but while B&R regard conventional marginalist (real) theory as inconsistent with the endogenous money view, B&D, following Wicksell,  regard it as consistent. We sympathize with B&R’s criticism of conventional theory, especially their Keynesian view of the interest rate as a purely monetary phenomenon. Interestingly, B&R refer to the problems of marginalist capital theory as undermining the natural interest rate concept.
La macroeconomia dopo la moneta endogena (Wonkish)La macroeconomia dopo la moneta endogena (Wonkish)
Sergio Cesaratto
Sergio Cesaratto (Rome, 1955) studied at Sapienza, where he graduated under the direction of Garegnani in 1981 and received his doctorate in 1988. He obtained a Master's degree in Manchester in 1986. He worked as a researcher at CNR where he was of Innovation Economics. In 1992 he became a researcher at La Sapienza, and then associate professor in Siena where he teaches Economic Policy and Development Economics.

Leave a Reply

Your email address will not be published. Required fields are marked *