The Structure–Agency Relation of Growth Imperative Hypotheses in a Credit Economy

Growth dynamics are often explained by insatiable wants or anthropological constants, modelled as preferences and behavioural axioms. By contrast, structural perspectives postulate a growth imperative due to macroeconomic monetary system-inherent properties. Reconciling both perspectives, we develop relational structure–agency framework evaluate hypotheses. We analytically separate the credit structure (including balance-sheet mechanics nominal uncertainty) from institutional structure, describe decision norms for households, entrepreneurs, commercial banks, central bank, state. Our suggests that interplay of principles, income-dependent saving portfolio rationales prevent interest rate adjusting downwards thereby cause mature economies stagnate. Underemployment results in policies becoming dominant norm – seeking, under budget constraints, overcome declining rates. method helps identifying agency resolve this imperative. Preventing real asset inflation relieve policy at effective lower bound appears essential.