A critique of a Post Keynesian model of hoarding, and an alternative model

The concept of a “propensity to hoard” is frequently used by Post Keynesians and Circuitists in macroeconomic models to account for how households manage their flow of savings. This concept is argued to be erroneous, and continuous circuit models are better than discrete for a clear understanding of this. The phenomenon of time dispersion of circulating money is central. First-order differential equations and time delays are used as building blocks to assemble and simulate a circuit model with debt. Even at high interest and savings rates the system evolves without ending in debt-induced crisis.