Abstract
A necessary first step in understanding macroeconomics is a full discussion of monetary and financial issues. The principle of effective demand which is one of the two essential features of post-Keynesian economics — that is, the causality that runs from investment to saving — is best understood within the context of a macroeconomic explanation of the monetary circuit. This is why it is preferable to start with the monetary dimension of macroeconomics before we proceed to an explanation of employment and growth.
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© 2009 Marc Lavoie
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Lavoie, M. (2009). A Macroeconomic Monetary Circuit. In: Introduction to Post-Keynesian Economics. Palgrave Macmillan, London. https://doi.org/10.1057/9780230235489_3
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DOI: https://doi.org/10.1057/9780230235489_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-22921-1
Online ISBN: 978-0-230-23548-9
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