EconPapers    
Economics at your fingertips  
 

Stock-flow ratios and the paradox of debt in canonical neo-kaleckian and supermultiplier models

Lidia Brochier () and Fábio Freitas

MPRA Paper from University Library of Munich, Germany

Abstract: The paper addresses the features of stock-flow consistent (SFC) canonical versions of neo-kaleckian and supermultiplier models that introduce the accumulation of debt of households and firms. The aim of this comparison is twofold: (i) to analyze under which conditions the paradox of debt emerges in the household and firms sector in each model; (ii) to evaluate the extent in which these conditions differ due to each models' specific closure. Preliminary results suggest that the paradox of debt in firms' sector is not a necessary result of supermultiplier models. As for households sector, the paradox of debt is a feature of the canonical supermultiplier model, yet there may be episodes of rising debt-to-income ratios and financial crisis as precipitated by policy decisions.

Keywords: Paradox of debt; neo-Kaleckian model; Supermultiplier model; autonomous expenditures; SFC (search for similar items in EconPapers)
JEL-codes: E11 E12 O41 (search for similar items in EconPapers)
Date: 2019-09-30
New Economics Papers: this item is included in nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/96252/1/MPRA_paper_96252.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:96252

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2020-05-08
Handle: RePEc:pra:mprapa:96252