Propensities to save and indebtedness in a neo-kaleckian logic

This article presents a Neo-Kaleckian model with debt in which complete saving behaviours are taken into account. First, we analyse the short-run equilibrium values and the comparative static of the model in a standard way. Then, we examine the long-run results when the debt ratio is endogenous and we put forward the role of the interest rate and propensities to save on financial stability. Moreover, we focus especially on the saving behaviours of workers and their capacity to generate financial fragility, involving the instability of the debt ratio