Demand-led growth with debt constraints a Harrodian.docVIP

Demand-led growth with debt constraints: an Harrodian perspective Graham White Discipline of Economics University of Sydney Paper prepared for the Conference on The Institutional and Social Dynamics of Growth and Distribution, Lucca (Italy), 10 – 12 December, 2007 Abstract The paper attempts to clarify some of the implications of different autonomous demands, with differing rates of growth, in a demand-led growth model where policy makers are concerned about the ratios of external debt to income and public sector debt to income. We seek a fairly simple explanation of the actual growth rate in