Deficits and Institutional Theorizing about Households and the State

  title={Deficits and Institutional Theorizing about Households and the State},
  author={Z. Todorova},
  journal={Journal of Economic Issues},
  pages={575 - 582}
  • Z. Todorova
  • Published 2007
  • Economics
  • Journal of Economic Issues
  • In a pecuniary economy, households’ spending is limited by the stock of state money and the flow of income received in the form of state money. Thus, households are subject to liquidity constraint as they incur debts in the established unit of account, and consequently need to obtain the widely accepted medium of exchange (Wray 1998; Bell 2001). Even when households’ borrowing is unlimited, there is liquidity constraint to the extent that various interest rates and fees are administered by… CONTINUE READING
    10 Citations


    Fifteen fatal fallacies of financial fundamentalism: a disquisition on demand-side economics.
    • W. Vickrey
    • Economics, Medicine
    • Proceedings of the National Academy of Sciences of the United States of America
    • 1998
    • 22
    • PDF
    Twin Deficits and Sustainability
    • 7
    • PDF
    Can Taxes and Bonds Finance Government Spending?
    • 152
    • PDF
    The Role of the State and the Hierarchy of Money
    • 213
    • PDF