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This book investigates, from a Keynesian perspective, the
interaction of effective demand with the wage-price spiral, the
dependence of goods market outcomes on financial markets, and the
impact of monetary policy on financial and real markets. These
issues are discussed by way of rigorously formulated approaches
that lay foundations for a theory of endogenously generated
business fluctuations.
This book extends the KMG framework (Keynes, Meltzer, Goodwin) and focuses on financial issues. It integrates Tobin's macroeconomic portfolio approach and emphasizes the issue of stock-flow consistency.
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