Headline:
Debt-Driven Business Cycles in a Stock-Flow Consistent Agent-Based Model
This paper studies the effects of firms’ indebtedness on the dynamics of a monetary production economy. Starting from the work of Minsky and Palley, we build a stock-flow consistent agent-based model that emphasizes the effects of firms’ debt on macro dynamics and produce endogenous business cycles. We identify two effects of debt: an aggregate demand increasing effect and a functional income distribution effect and describe their consequences during the different phases of the cycle. These effects are specific to this study but are compatible with the existing literature.
- Publikationsjahr
- 2016
- Publikationstyp
- Sonstiger Publikations- oder Dokumenttyp
- Zitation
-
Botte, F., & Cottin-Euziol, E. (2016). Debt-Driven Business Cycles in a Stock-Flow Consistent Agent-Based Model.
- DOI
- 10.13140/RG.2.2.23744.53765
- Beteiligte Projekte
- Das Weltfinanzsystem als verteiltes System zur Beförderung des Gemeinwohls (DOLFINS)