Post-Keynesian Economics Challenges Traditional Interest Rate Policies with New Approach
The article discusses different views on how interest rates should be set by central banks. It compares the New Consensus approach with the Post-Keynesian perspective and suggests an alternative to the Taylor Rule. Post-Keynesian economics focuses on the idea that money is created within the economy, not controlled from outside. The article points out that while Post-Keynesian theory lacks a clear method for central banks to decide on interest rates, it proposes a new way to set interest rates that aligns better with Keynes's ideas.