Details

Autor(en) / Beteiligte

• Herr, Hansjörg
• Hein, Eckhard

Titel

"It is clear that this kind of deregulated capitalism will not survive in the end". Interview with Hansjörg Herr

Ist Teil von

• European Journal of Economics and Economic Policies: Intervention (EJEEP), 2021-09, Vol.18 (2), p.111-118

Ort / Verlag

Cheltenham: Edward Elgar Publishing

Erscheinungsjahr

2021

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• [...]when I finished my studies in 1981, I became a Research Assistant for five years at the Institute for Economic Policy at the Free University, as it was then called, and the director was Hajo Riese. [...]in both of these models, the money supply was exogenously given by the central bank, and then the private households, the wealth owners, decided how much credit would be supplied or how many shares they would buy from the enterprises. Later, myself and others argued that the central bank is fixing the refinancing rate and this gives, together with the interest margin of banks, the lending rate and at the same time the minimum of the profit rate. In this tradition it is stressed that, if the private sector is somehow not able to establish this budget constraint and inflationary developments are triggered, because maybe agents are too optimistic, then we need the central bank, then we need policy intervention to prevent the destabilization of the system.