{"id":409,"date":"2014-03-30T13:56:06","date_gmt":"2014-03-30T20:56:06","guid":{"rendered":"http:\/\/www.thomaspalley.com\/?p=409"},"modified":"2018-12-11T21:07:45","modified_gmt":"2018-12-12T04:07:45","slug":"effective-demand-endogenous-money-and-debt-a-keynesian-critique-of-keen-and-an-alternative-theoretical-framework","status":"publish","type":"post","link":"https:\/\/thomaspalley.com\/?p=409","title":{"rendered":"Effective demand, endogenous money, and debt: a Keynesian critique of Keen and an alternative theoretical framework"},"content":{"rendered":"<p>This paper presents a Keynesian critique of Steve Keen\u2019s treatment of the endogenous money \u2013 credit \u2013 aggregate demand (AD) nexus. It argues his analytic intuition is correct but is developed in the wrong direction. Keen\u2019s fundamental relation describing determination of AD in an endogenous credit money economy suffers from two flaws. First, it neglects the core Keynesian problematic of leakages from and injections into the circular flow of income. Second, it falls into the theoretical morass regarding the black box of velocity of money via its adoption of a form of Fisher equation to determine AD. The paper contrasts Keen\u2019s treatment with a Keynesian structural framework. <a href=\"http:\/\/www.thomaspalley.com\/docs\/research\/ad_and_debt.pdf\" target=\"_blank\" rel=\"nofollow\">[READ MORE HERE]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This paper presents a Keynesian critique of Steve Keen\u2019s treatment of the endogenous money \u2013 credit \u2013 aggregate demand (AD) nexus. It argues his analytic intuition is correct but is developed in the wrong direction. Keen\u2019s fundamental relation describing determination of AD in an endogenous credit money economy suffers from two flaws. First, it neglects [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-409","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=409"}],"version-history":[{"count":8,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/409\/revisions"}],"predecessor-version":[{"id":1568,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=\/wp\/v2\/posts\/409\/revisions\/1568"}],"wp:attachment":[{"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thomaspalley.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}