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The paper shows that structural models of the IS-LM and Mundell-Fleming variety have a lot to tell about the macroeconomics of the current global crisis. In addition to demonstrating how the emergence of risk premiums in money and capital markets may drive economies into recessions, it shows the...
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We investigate the effects of debt-capital ratio and expected inflation rate on the stability of the economy using a … Minsky model and reconsidering Fisher's debt-deflation theory. We have developed static and dynamic models that formalize an … inflation-targeting policy. The static model reveals that an increase in the debt-capital ratio may negatively impact the profit …
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increased the inflation rate by about 0.5 pp. Hence, the inflation outlook in 2013 would not have been negative and would …
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