Watanabe, Toshio - In: European journal of economics and economic policies : … 22 (2025) 1, pp. 9-31
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 …