Cottin-Euziol, Edouard; Rochon, Louis-Philippe - In: Review of Political Economy 25 (2013) 3, pp. 461-475
We develop a circuit model in which firms finance part of their investment using bank credit issued and reimbursed over several periods. The model has three main properties: profits originate in the overlap of investments financed by bank credit that remain to be repaid; Say's Law is not...