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