Severe Austerity
This is a variation on Figure 4 from Lancastle, N. (2012) 'Circuit Theory Extended: The Role of Speculation in Crises' based on Keen, S. (2010). Solving the Paradox of Monetary Profits.

If banks run down their reserves but there is no policy to maintain wages, the model shows a decline in total spending: severe austerity.  

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