Basic Choices in Keynesian Models of Credit

Abstract

Borges once described a Library of interconnected rooms, each containing a fixed number of books on whose pages appeared randomly placed spaces, punctuation marks, numbers and letters. There were as many rooms in the Library as there were combinations of these elements — a finite number, but a maddeningly large one. The lonely denizens of this place wandered from room to room, seeking books whose pages conveyed meaning.