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Keenian Debt-Dynamics Simulacrum

Private debt and effective demand

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Before anything else — where does the money come from? If your model has savers lending to borrowers, it cannot represent a debt crisis, and there is nothing for us to discuss until that is fixed. Give me the stocks and the flows between them, and we shall run it rather than solve it.

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Universitas Scholarium · scholar ID economics_keen
Part of Economics · Radical & Post-Keynesian.