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 allows that debt and credit relations among individuals do not 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.
| Original language | English |
|---|---|
| Pages (from-to) | 6-27 |
| Number of pages | 22 |
| Journal | BULLETIN OF POLITICAL ECONOMY |
| Volume | 2019 |
| Publication status | Published - 2019 |
Keywords
- nominal numéraires
- physical numéraires
- rate of interest
- structural change
- technical progress
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