{"title":"A Fable on Debt and Debt Management","authors":"J. Toporowski","doi":"10.1093/oso/9780198816232.003.0006","DOIUrl":null,"url":null,"abstract":"Kalecki told a fable about how a forged banknote may circulate in an impoverished community paying off debts. The fable reveals the necessity for liquidity in a financial system conceived as a group of mutually-indebted agents, who can maintain payments on their debts as long as they have enough liquidity, or can sell debt claims to each other, or a banking system exists which can create credit to buy debt claims, or a central bank exists to buy in debt claims. This means that income from actual production and exchange of ‘real’ goods and services is unnecessary to maintain debt payments.","PeriodicalId":313534,"journal":{"name":"Interest and Capital","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2022-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Interest and Capital","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1093/oso/9780198816232.003.0006","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
Kalecki told a fable about how a forged banknote may circulate in an impoverished community paying off debts. The fable reveals the necessity for liquidity in a financial system conceived as a group of mutually-indebted agents, who can maintain payments on their debts as long as they have enough liquidity, or can sell debt claims to each other, or a banking system exists which can create credit to buy debt claims, or a central bank exists to buy in debt claims. This means that income from actual production and exchange of ‘real’ goods and services is unnecessary to maintain debt payments.