Contributors: Cahen-Fourot, Louison (Université Paris)
My name is Louison Cahen-Fourot, I am a PhD student in Economics at Paris-13 Villetaneuse University. I work on the environmental consequences of financialization and on ecological macroeconomics under the supervision of Cédric Durand (Paris-13) and Marc Lavoie (U. of Ottawa).
Scientific paper contribution: Ecological monetary economics: A post-Keynesian critique
The paper is co-authored by Prof. Marc Lavoie
Abstract: Ecological economists tackling monetary issues advocate monetary policies that seem, from a post-Keynesian point of view, either questionable or unnecessary. Ecological monetary economics currently appears to be mostly articulated around two core assumptions: First, to be achieved, a stationary state (and a fortiori a degrowth economy) would require interest rates set at zero. Second, such an economy would require a monetary system in which the monetary authorities have full control over the quantity of money in circulation. This paper adopts a critical stance towards the emerging ecological monetary economics from the standpoint of the post-Keynesian approach. It deals with the view on interest rates and then tackles the issue of a 100% reserve monetary system. We argue that interest rates set to zero is an unnecessary condition to reach a steady-state economy and that a 100% reserves monetary system would preclude any sustainable path towards a non growing economy.
Key words: Ecological macroeconomics ; Ecological monetary economics ; post-Keynesian economics ; steady-state ; degrowth