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On Pasinetti’s ‘natural’ rate of interest

Author

Listed:
  • Enrico Bellino

    (Università Cattolica del Sacro Cuore, Via Emilia Parmense, 84, 29122, Piacenza, Italy)

Abstract

This paper provides a concise exposition of the notion of ‘natural rate of interest’ introduced by Luigi Pasinetti in his structural change analysis. Its normative nature is suitably stressed: it is that rate of interest that prevents that debt and credit relations among individuals alter a distribution of national income based on the ‘labour principle’, that is, a situation where each individual perceives income in proportion to the quantity of labour provided.

Suggested Citation

  • Enrico Bellino, 2019. "On Pasinetti’s ‘natural’ rate of interest," Bulletin of Political Economy, Bulletin of Political Economy, vol. 13(2), pages 117-137, December.
    • Handle: RePEc:awu:journl:v:13:y:2019:i:2:p:117-137
    as

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    References listed on IDEAS

    as
    1. Pasinetti,Luigi, 1993. "Structural Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521432825, September.
    2. Pasinetti, Luigi L, 1988. "Growing Subsystems, Vertically Hyper-integrated Sectors and the Labour Theory of Value," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 12(1), pages 125-134, March.
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    More about this item

    Keywords

    rate of interest; technical progress; structural change; physical numéraires; nominal numéraires;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E49 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Other

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