Charpe, Matthieu; Flaschel, Peter; Proano, Christian; … - In: European Journal of Economics and Economic Policies: … 6 (2009) 2, pp. 247-270
We consider a Keynes-Goodwin model of effective demand and the distributive cycle where workers purchase goods and houses with a marginal propensity significantly larger than one. They therefore need credit, supplied from asset holders, and have to pay interest on their outstanding debt. In this...