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A DYNAMIC ANALYSIS OF DEBT‐LED AND DEBT‐BURDENED GROWTH REGIMES WITH MINSKIAN FINANCIAL STRUCTURE
Author(s) -
Nishi Hiroshi
Publication year - 2012
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2012.04158.x
Subject(s) - economics , debt , hedge , context (archaeology) , macroeconomics , debt levels and flows , mechanism (biology) , monetary economics , internal debt , ecology , paleontology , philosophy , epistemology , biology
In this paper, we formally derive a version of the Minskian taxonomy of the firms' financial structure (hedge, speculative and Ponzi types), under the economic growth context in the long run. As for the economic growth, we formalize the mechanism of debt‐led (debt‐burdened) growth where the economy expands as the debt variables increase (decrease). By explicitly introducing the relationship between the finance growth regime and Minskian taxonomy in a dynamic model, the model in this paper enables us to evaluate whether or not the economic growth regime is sounded in terms of the firms' financial positions.