Why Are Kalecki’s Rentiers So Boom Tired

Research output: Contribution to journalArticle

Abstract

To many economists, not to mention all central bankers, inflation is considered to be public enemy number one. This paper seeks to understand why inflation should be so despised. To escape from simultaneous restrictions a temporal single system (TSS) approach is employed. Firstly a simple illustration of the TSS approach is considered. In order to focus on distributional issues a positive wage and a class of rentiers are built in. Rentiers hold money stocks, past accumulated value in money terms. Rentiers are assumed to lend to productive capitalists, i.e. we have finance capital. Once we build in money stocks we find that appropriate price increases can potentially hide the effect of falling exploitation of labour, transferring the cost of reduced exploitation from productive capitalists to rentiers. Finally, conclusions are drawn.
Original languageEnglish
Pages (from-to)163-181
Number of pages19
JournalInternational Journal of Social Economics
Volume30
Issue number1/2
DOIs
Publication statusPublished - 2003

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