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Mause I 56
Interest Rates/Keynes: According to his liquidity preference
theory, interest is a monetary phenomenon, not a real one as in
Neoclassicism. Interest rates are therefore mainly determined
by money supply and demand - less by real factors such as
capital supply and demand. For this reason, monetary policy
can influence real variables (such as the level of investment) via
the level of interest rates. On the other hand, as a result of
nominal wage rigidity, the money supply and price levels have
an impact on the level of real wages and thus on the level of
employment. Unlike neoclassicism, Keynes' system cannot see
real and monetary aspects of economic activity independently.
EconKeyn I
John
Maynard
Keynes
The
Economic
Consequen
ces of the
Peace New
York 1920
Item
> Keynes, >
John
Interest
Maynard Rates
Mause I
Karsten
Mause
Christian
Müller
1. Cf. .J. M. Keynes, The general theory of employment, interest Klaus
Schubert,
and money. London 1936.
Politik und
Wirtschaft:
_____________
Ein
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indicate the page number. The corresponding books are indicated on the right Kompendiu
hand side. ((s)…): Comment by the sender of the contribution.
m
The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the
Wiesbaden
Dictionary of Arguments. If a German edition is specified, the page numbers
2018
refer to this edition.
(1)
> Counter arguments against Keynes
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