On the Dynamics of Growth and Debt
The strong rise in public debt has been one of the main concerns for economic policy in the recent period. This book provides a theoretical analysis of the dynamics of public debt. It analyses the impact of accumulating debt on the stability of the economy, and examines the implications ofseveral alternative budgetary regimes. In contrast to most analyses of the dynamics of government finance, which start from the neo-classical equilibrium approach, this analysis is inspired by the post-Keynesian theory of disequilibrium growth. It develops a coherent microeconomic model of the growth of the firm in the presence ofimperfect capital markets and equity rationing. On the basis of this model the medium-term and long-term dynamics are examined with special reference to the accumulation of public debt and the distribution of income and wealth within the private sector.
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Finance Risk and the Growth of the Firm
The Keynesian Corridor
3 other sections not shown
adjustment process aggregate demand analysis assumed Barro regime basic Blinder-Solow regime budget constraint budget deficit capital stock capitalists cent chapter constant consumption core inflation corporate debt costs of growth creditor current account cycle differential saving distribution effect dmax Domar equation equilibrium equity market fall firm fiscal policy function given government budget government expenditure higher growth rate impact implies income distribution increase inflation interest effect interest payments internal savings investment IS/LM models Kaldor Keynesian limit cycle liquidity constraints locus long period long-term lower managers medium period ment microeconomic negative open economy optimum parameter Pasinetti phase diagram policy regimes positive post-Keynesian profit rate public debt rate of growth real interest rate relation rentiers rise risk savings propensities shareholders Solow solution stability steady stock and flow strategy tax rates theory tion Tobin-Buiter unstable valuation variables wages wealth effect workers zero