Economic growth and debt: a simplified model

Krouglov, Alexei (2015): Economic growth and debt: a simplified model.

Abstract

Presented is a mathematical model of single-product economy where an investment and debt are used to alter the demand for and supply of product. Explored is the dynamics of a nominal economic growth and decline. Examined are cases of a constant-rate growing debt and a constant-rate and constant-acceleration growing investment.

• Item Type: MPRA Paper
• Language: English
• Keywords: debt; investment; modeling
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers

References

Krouglov, Alexei, 2006, Mathematical Dynamics of Economic Markets (New York: Nova Science Publishers).

Krouglov, Alexei, 2009, “Mathematical Dynamics of Economic Growth as Effect of Internal Savings,” Finance India, Vol. 23, No. 1, pp. 99-136.

Krouglov, Alexei, “Secular Stagnation and Decline: A Simplified Model” (December 18, 2014). Available at SSRN: http://ssrn.com/abstract=2540408 or http://dx.doi.org/10.2139/ssrn.2540408.

Krouglov, Alexei, “Credit Expansion and Contraction: A Simplified Model” (May 8, 2015). Available at SSRN: http://ssrn.com/abstract=2604176 or http://dx.doi.org/10.2139/ssrn.2604176.

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