1. Ecological monetary economics: A post-Keynesian critique.
- Author
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Cahen-Fourot, Louison and Lavoie, Marc
- Subjects
- *
ECOLOGICAL economics , *KEYNESIAN economics , *HETERODOX economics , *INTEREST rates , *MACROECONOMICS - Abstract
The monetary analysis of some ecological economists currently appears to be mostly articulated around the following core: a stationary economy (and a fortiori a degrowth economy) is incompatible with a system in which money is created as interest-bearing debt. To question the relevance of the debt-money/positive interest rate/output growth nexus, this paper adopts a critical stance towards the currently emerging ecological monetary economics from the standpoint of another strand of heterodox economics – the post-Keynesian approach. In its current state, ecological monetary economics is at odds with post-Keynesian economics in its analysis of the money–growth relationship. This will be shown using the theory of endogenous money and a simple Cambridgian–Kaleckian model where debt-money and a positive interest rate are compatible with a full stationary economy. [ABSTRACT FROM AUTHOR]
- Published
- 2016
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