The Basic Dynamics of the Stock of Money and Capital

Julián Sánchez ()
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Julián Sánchez: Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid

No 2004/01, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: We present in this paper a model that explains the role of the external financing of capital in the evolution of a primitive economy constituted by families and firms. Our aim is to clarify which are the essential financial elements that in more complex and advanced economies could explain the evolution of their financial structures towards fragility. Now we begin studying the stability of the financial structure of a rudimentary economy with endogenous money.

JEL-codes: E12 E32 E51 G10 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2004-12
New Economics Papers: this item is included in nep-mac and nep-mon
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