List of used symbols

Table 13.1: Variables and parameters in the book

Abbreviation	Name	Color*
$\alpha$	Coefficient of the component of the IS curve dependent on the interest rate	#
$\beta$	Loss parameter of the central bank	#
$\mu$	Government spending multiplier	#
$\mu_T$	Tax multiplier for taxation autonomous from income	#
$\mu_{T_a}$	Tax multiplier for taxes depending on income	#
$\mu_{H}$	Haavelmo multiplier	#
$a_a$	Autonomous investments (or ‘animal spirits’)	#
$a_r$	Interest rate sensitivity of investments	#
$a_Y$	Accelerator effect of investment demand	#
$A$	Components in the IS curve autonomous from income and independent of the interest rate	#
$b$	Social benefits	#
$c_a$	Autonomous consumption	#
$c_Y$	Marginal propensity to consume out of total income	#
$c_{Y_d}$	Marginal propensity to consume out of disposable income	#
$C$	Aggregate consumption	#
$C_{h}$	Household consumption expenditure	#
$FB_f$	Financial balance of the foreign sector	#
$FB_p$	Financial balance of the private sector	#
$FB_g$	Financial balance of the government sector	#
$G$	Government expenditure	#
$i$	Nominal interest rate	#
$i^{best}$	Optimal policy rate of the central bank at the zero lower bound	#
$I$	Investment	#
$IS^n$	Nominal interest rate IS curve	#
$IS^r$	Real interest rate IS curve	#
$k$	Conflict orientation of employees	#
$K$	Capital stock	#
$L$	Employment	#
$L^{N}$	Employment in the distributional equilibrium	#
$L^{*}$	Employment in the goods market equilibrium	#
$Loss$	Loss function of the central bank	#
$m$	Price mark-up of firms on unit labour costs	#
$M$	Imports	#
$MC$	Marginal cost	#
$MR$	Monetary policy rule	#
$N$	Labour force	#
$\pi$	Realised inflation	#
$\pi^{e}$	Inflation expectations	#
$\pi_{pk}$	Realised inflation in the post-Keynesian Phillips curve	#
$\pi^{T}$	Inflation target	#
$\Pi_r$	Total real profit	#
$P$	Price level	#
$P^{e}$	Expected price level	#
$PS$	Price-setting curve	#
$PS_{pk}$	Post-Keynesian price-setting curve	#
$PC$	Phillips curve	#
$PC_{pk}$	Post-Keynesian Phillips curve	#
$r$	Real interest rate	#
$S$	Saving	#
$S_{h}$	Saving of households	#
$S_{g}$	Saving of the government	#
$S_b$	Saving of the firms	#
$t$	Average net tax rate	#
$T$	Net tax revenues	#
$Tr$	Transfer payments	#
$T_a$	Tax payments independent of income	#
$T_{h}$	Tax payments by households	#
$T_b$	Tax payments of the firms	#
$U$	Number of unemployed	#
$u$	Unemployment rate	#
$u^*$	Equilibrium unemployment rate	#
$V^E$	Present value of the expected cash-flow in the calculation of the marginal efficiency of capital	#
$VL_{g}$	Payments for the intermediate consumption of the government	#
$VUC$	Variable unit costs	#
$w_n$	Nominal wage rate	#
$w^{ps}$	Real wage target of firms	#
$w_r$	Real wage rate	#
$w^{ws}$	Real wage target of workers	#
$W$	Real wage sum	#
$WS$	Wage-setting curve	#
$WS_{pk}$	Post-Keynesian wage-setting curve	#
$X$	Exports	#
$y$	Labour productivity	#
$Y$	Total output, total income	#
$Y^{*}$	Total output, total income in the goods market equilibrium	#
$Y^{best}$	Best possible output to be reached by the central bank at the zero lower bound	#
$Y_{h}^{g}$	Household income received from the government sector	#
$Y_{h}^b$	Household income received from the firms sector	#
$Y_{N}$	Aggregate demand	#
$Y_{N_a}$	Income autonomous aggregate demand	#
$Y^{N}$	Total output, total income in the distributional equilibrium	#
$Y^{p}$	Output at full utilisation of production capacity	#
$Y_{d}$	Disposable income	#
$Z$	Subsidies	#
* Colour in illustrations