The Profit-Investment-Unemployment Nexus and Capacity Utilization in a Stock-Flow Consistent Model

Download or read book The Profit-Investment-Unemployment Nexus and Capacity Utilization in a Stock-Flow Consistent Model written by Jean-Bernard Chatelain and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies under which conditions the share of profit in value-added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock-flow consistent model. The efficiency of demand-side versus supply-side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply.