WHAT IS THE RELATIONSHIP BETWEEN THE RATES OF INTEREST AND PROFIT? AN EMPIRICAL NOTE FOR THE U.S. ECONOMY, 1869-2009
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Published:
Apr 18, 2013
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Abstract
The current paper aims to contribute to the study of the relation between the interest rate and the rate of profit by presenting an empirical analysis of the United States economy during the period of 1869 to 2009. The main findings rendered are: 1) the general rate of profit has set an upper limit for the real short-term and long-term interest rates; 2) the real long-term interest rate has undergone similar changes to those of the general rate of profit, whereas the real short-term interest rate has experienced movements opposite to the latter; and 3) evidence supports heterodox theories which stress that monetary policy affects the distribution of income through the modification of the rate of profit.
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How to Cite
Valle Baeza, A., & Mendieta Muñoz, I. (2013). WHAT IS THE RELATIONSHIP BETWEEN THE RATES OF INTEREST AND PROFIT? AN EMPIRICAL NOTE FOR THE U.S. ECONOMY, 1869-2009. Investigación Económica, 71(280). https://doi.org/10.22201/fe.01851667p.2012.280.37344
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