Sự phát triển này, như lập luận trong MAK, là một công thức cho tình trạng đình lạm. Nó có thể không chính đáng để giả định, như chúng ta đã thực hiện cho đến nay, lãi suất vẫn không đổi trong khi đối mặt với phong trào lớn trong tỷ lệ nợ b. Cân nhắc danh mục đầu tư sẽ đề nghị một mối quan hệ tích cực giữa tỷ lệ nợ và tỷ lệ lãi suất: để thuyết phục các nhà đầu tư để tổ chức một phần ngày càng tăng của. | M. CASERTA the capital-output ratio in the expectation of generating the right amount of productive capacity that is a particular capital-output ratio. By a very simple formal representation of this model it is possible to show that the expectation of firms as to the capital-output ratio are not generally met. The model is just an extension of the Keynesian multiplier to a growth context. Investment determines output but it also determines the growth of capital. In fact it is the growth of capital AK K that firms make a decision upon. This decision depends on how intensely capital is being used . on the output-capital ratio X K K- aX X a 0 K But since investment relative to output must equal the saving rate s X 1AK K s K As long as the parameters are all positive and s j8 the model has a positive solution for the rate of growth of capital and for the output-capital ratio AK _ as X _ a K s - 0 K s-fi The economy will grow at the desired rate but firms will not be achieving the desired capital-output ratio which is the reason why they are investing at all. The main implication of the model should not be surprising when one considers that both aspects of investment its demand-generating and its capacitycreating aspects figure in the model. This is another way of saying that a dynamic problem is being addressed that is one where the effects of individual behaviour on the underlying structure of the economy are taken into consideration. Investment raises demand but it also enlarges capacity which generates a new context for decision making. To rule out the above-mentioned implication of the model two routes are available. The first is to rule out dynamics altogether this means studying investment solely in its demand-generating role while capital is kept constant Keynes s choice . The other option is to set the economy straight on the steady-state path this means studying investment in its capacitygenerating role but keeping demand with respect to capacity constant.
