 The Macroeconomy and the Monetary CircuitThomas Lagoarde-Segot ()
Chapter Chapter 6 in Ecological Money and Finance, 2023, pp 163-200 from Springer Abstract: Abstract The Central Bank has a balance sheet. The State also has one, as do banks, companies, households, and companies, households, and each of us. Moreover, these balance sheets are all interconnected: every payment is a receipt, and every debt is a claim. The most realistic representation of the economy is perhaps not that of a market, but rather that of a dynamic network of interconnected balance sheets, influenced by accounting conventions, and in which money serves as a unit of account. This chapter begins with a few basic observations about the creation, circulation and destruction of money in the capitalist economy. This serves as a foundation to identify and discuss the key paradoxes of macroeconomic analysis, including the thrift paradox, the debt paradox, the cost paradox, and the public deficit paradox. We then build on this analysis to describe the detailed monetary mechanisms and macroeconomic implications of government net spending, and we derive the conditions for public debt stability. Finally, we discuss the links between the monetary production economy and sustainability. Date: 2023 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-14232-1_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-14232-1_6 Access Statistics for this chapter More chapters in Springer Books from Springer |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.