In the present paper we explicitly introduce interest payments and debt into a Kaleckian distribution and growth model … the equilibrium debt-capital-ratio are also analysed. It is shown, that the effects of interest variations on the … interest rate and the debt-capital-ratio. If the conditions for short-run "normal" effects of interest rate variations are …

the fiat monies issued by the state (typically, cash, banknotes, and central bank money) are not debt and that in … fractional reserve regimes, only a share of commercial bank money can be regarded as debt. The AVM argues, instead, that state …

ways: A debt effect increases credit card spending, while a credit effect leads to higher credit limits. In the short run … crisis, the credit effect exceeded the debt effect in the long run, pushing down long-term utilization. In our sample period … after the financial crisis, the debt effect dominated in the long run, and credit card utilization rates rose upon the …

We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower … accommodative monetary policy and deficit spending—generate a debt-financed short-run boom at the expense of indebted demand in the … future. When demand is sufficiently indebted, the economy gets stuck in a debt-driven liquidity trap, or debt trap. Escaping …

": they believe that government debt must necessarily be repaid and therefore leave the present value of their income streams …

government sector (no taxes, no subsidies) and without banks granting household credit, firms end up with debt whenever they must … pay interest over their loans; and when people in addition make savings, the debt situation for firms deteriorates. Second … people, or all end up with debt whenever interests on credit are positive. It is concluded that a way out of the monetary …