ABSTRACT
This chapter provides a short and essential sketch of some relevant economic facts that involved, during the last 30 years, almost all the Western countries, especially with respect to the trends in income distribution and debt accumulation. It investigates the macroeconomic consequences of a growth process driven and fuelled by household debt. The chapter focuses on an extended version of the Supermultiplier model, integrated with an explicit consideration of household debt financed through endogenous credit money. It introduces and clarifies the Sraffian Supermultiplier approach to growth, with its focus on the role of the autonomous components of demand. The chapter analyses the macroeconomic implications of debt-financed consumption through an extended Supermultiplier model with endogenous credit money. It presents some interesting findings on the stability of the debt/debtors' income and on the adjustment of the rate of accumulation to the rate of credit-financed consumption.
