| Abstract: | The goal of this article is to make a heuristic and comparative presentation of how the major post-Keynesian models of growth and distribution integrate money, more specifically interest rates, into their framework. Five variants will be considered, all constructed on the basis of the newer Kaleckian model. It will be shown that increases in real interest rates may have surprising effects on effective demand. It will also be shown that accumulation rates and leverage ratios need not move together. The latter finding reinforces a major hypothesis of the analysis, that is, real interest rates are an exogenous distributive variable. |
