If the short- run equilibrium capit

If the short- run equilibrium capital accumulation is debt- burdened andthe economy is in the short- run normal or intermediate case, the war-ranted rate of accumulation/growth will be unstable. If we assume thatinitially the short- run equilibrium rate of capital accumulation and thewarranted rate are equal by a fluke, a rise in the warranted rate caused byan increase in the rate of interest will now make the short- run equilibriumrate of capital accumulation fall and cumulatively diverge from the higherwarranted rate of accumulation/growth. In this case, we will observe themacroeconomic paradox of debt, that is falling rates of capital accumulation but rising debt–capital ratios. The latter will cumulatively diverge froma decreased unstable long- run equilibrium debt–capital ratio triggered bythe increase in the interest rate. The results for the unstable long- run equilibrium are also summarized in Table 9.7.