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The Basic Dynamics of the Stock of Money and Capital

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  • Sánchez, Julián

    ()
    (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid)

Abstract

We present in this paper a model that explains the role of the external financing of capital in the evolution of a primitive economy constituted by families and firms. Our aim is to clarify which are the essential financial elements that in more complex and advanced economies could explain the evolution of their financial structures towards fragility. Now we begin studying the stability of the financial structure of a rudimentary economy with endogenous money.

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File URL: http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/sanchez_2004.pdf
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Paper provided by Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) in its series Working Papers in Economic Theory with number 2004/01.

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Length: 28 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:uam:wpaper:sanchez_2004

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  1. Mehrling, Perry, 1999. "The vision of Hyman P. Minsky," Journal of Economic Behavior & Organization, Elsevier, vol. 39(2), pages 129-158, June.
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