Thursday, October 9, 2008
Present / Future Credit Mix under Financial Uncertainty and Endogenous Money
So, I have been working my brain trying to conceptualize how credit and financial mis-coordination can be integrated with Keynes' liquidity preference and post-Keynesian concepts of credit and money endogeneity.
This where I'm at so far. It may make no sense at all... but I guess everyone with an econ background should be at least trying to figure out what's going on! The first picture is my basic setup, the second is an example of potential dangerous attempted monetary expansion under conditions of endogeneity, liquidity preference and credit, and high levels of uncertainty whereby credit money suppliers / savers are unwilling / unable to lend for present spending