On Pasinetti’s ‘natural’ rate of interest


This paper provides a concise exposition of the notion of ‘natural rate of interest’ introduced by Luigi Pasinetti in his structural change analysis. Its normative nature is suitably stressed: it is that rate of interest that prevents that debt and credit relations among individuals alter a distribution of national income based on the ‘labour principle’, that is, a situation where each individual perceives income in proportion to the quantity of labour provided.

Volume :- No.13 (2019)

Issue No :- 2 (2019)

Pages :- 117-137

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