Monetary policy

Max Sawicky sawicky at epinet.org
Tue Jun 27 11:36:40 PDT 2000


BDL:

. . . 1) The fact that the faster productivity growth seen in recent years is likely to mean a higher rate of profit, and that there are theoretical reasons to think that the "equilibrium real interest rate" should increase with increases in the rate of profit. . . .

Interesting. If the real interest rate does not match the correct equilibrium level, the Government coaxes it to its proper place. Economic science has sure advanced.

mbs



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