|Mause I 225
Assets/Neoclassics/Monetarism: Assets are money, bonds, shares as well as existing and newly created real capital up to human assets. In terms of microeconomic theory, the portfolio is in equilibrium if the marginal return of each form of investment is identical. If this situation leads to an expansionary monetary policy, the rate of return on money decreases. Households will transfer their assets into other forms of assets.
The neoclassical and monetarist approaches assume a high interest rate reactivity of all forms of investment and thus also of investment demand.
All economic policy interventions are therefore also assessed on the extent to which they influence the overall economic interest rate level. An expansive monetary policy initially causes interest rate cuts (liquidity effect) and thus considerable effects on the goods markets in the form of volume and price adjustments._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018