Change search
ReferencesLink to record
Permanent link

Direct link
Räntan som en diskonteringsvariabel i makroekonomiska fluktuationer: En alternativ förklaring till nollräntor, höga tillgångsvärden och ingen inflation
2016 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The purpose of this paper is to propose an alternative view of the role of the interest rate in price level determination and macroeconomic fluctuations. Despite the fact that endogenous creation of credit money has a zero-sum effect on private aggregate net financial wealth, the quantity theory of money remains the leading explanation of how money affects the economy in the long run. In the paper an alternative view of the transmission mechanism is developed by considering the interest rate as a discount variable, which affects the general price level through the present value of firm capital. The model provides a supply side explanation to macroeconomic fluctuations and finds monetary policy in terms of interest rate management to be non-neutral. Instead the inevitable outcome of an expansionary monetary policy is high asset values, zero lower bound interest rates and absent inflation. This provides a new concept of inflation described as ‘value pull’- or ‘discount’-inflation, and contradicts the notion of cost-push inflation.

Place, publisher, year, edition, pages
Keyword [en]
Social Behaviour Law
Keyword [sv]
Samhälls-, beteendevetenskap, juridik
URN: urn:nbn:se:ltu:diva-56837Local ID: d94415b8-13ff-4286-b229-407d35228faeOAI: diva2:1030224
Subject / course
Student thesis, at least 15 credits
Educational program
Economics, bachelor's level
Validerat; 20160615 (global_studentproject_submitter)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

Open Access in DiVA

fulltext(763 kB)0 downloads
File information
File name FULLTEXT02.pdfFile size 763 kBChecksum SHA-512
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Norberg, Robert

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

ReferencesLink to record
Permanent link

Direct link