| Sumario: | Scholar Mark Ladenson's recent elaboration of the point made by economists William Brainard and James Tobin, that security demand functions must be consistent with the balance sheet constraint, overcomplicates a simple issue. Furthermore, the two contributions by Ladenson and by Brainard and Tobin, taken together, are incomplete and misleading in certain respects. This note gives a general statement of the conditions for exact exhaustion of the balance sheet constraint which includes the Brainard and Tobin and Ladenson conditions as special cases, using derivations that are much simpler than those in Ladenson's article. In short, mathematical derivation of the above the anlayais is elaborated in this article to reach some interesting conclusions.
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