Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and WealthThis book challenges the mainstream paradigm, which is based on the inter-temporal optimisation of welfare by individual agents. It introduces a new methodology for studying how it is institutions which create flows of income, expenditure and production together with stocks of assets (including money) and liabilities, thereby determining how whole economies evolve through time. Starting with extremely simple stock flow consistent (SFC) models, the text describes a succession of increasingly complex models. Solutions of these models are used to illustrate ways in which whole economies evolve when shocked in various ways. Readers will be able to download all the models and explore their properties for themselves. A major conclusion is that economies require management via fiscal and monetary policy if full employment without inflation is to be achieved. |
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Page 31
... assumed that households take no loans and the value of their dwellings will not be taken into consideration , but here we shall do otherwise for expository purposes . Finally , it will be assumed that the real capital accu- mulated by ...
... assumed that households take no loans and the value of their dwellings will not be taken into consideration , but here we shall do otherwise for expository purposes . Finally , it will be assumed that the real capital accu- mulated by ...
Page 58
... assumed to be instantaneous , so that inventories do not exist . Finance for inventory accu- mulation is thus ... assumed that the government fixes the price for an hour's labour and that there is an unlimited quantity of labour which is ...
... assumed to be instantaneous , so that inventories do not exist . Finance for inventory accu- mulation is thus ... assumed that the government fixes the price for an hour's labour and that there is an unlimited quantity of labour which is ...
Page 161
... assumed that politicians are concerned with the deficit to GDP ratio , here called PSBR / Y . " When this ratio exceeds a certain threshold , this triggers fiscal austerity , as governments reduce their pure government expen- ditures ...
... assumed that politicians are concerned with the deficit to GDP ratio , here called PSBR / Y . " When this ratio exceeds a certain threshold , this triggers fiscal austerity , as governments reduce their pure government expen- ditures ...
Contents
Notations Used in the Book | ix |
List of Tables | xviii |
Preface | xxxiv |
Copyright | |
17 other sections not shown
Other editions - View all
Monetary Economics: An Integrated Approach to Credit, Money, Income ... W. Godley,M. Lavoie Limited preview - 2006 |
Monetary Economics: An Integrated Approach to Credit, Money, Income ... W. Godley,M. Lavoie No preview available - 2007 |
Common terms and phrases
assumed balance sheet balance sheet matrix base line solution behaviour bill rate capital gains cash money central bank Chapter column consumption function current period demand disposable income economy endogenous entrepreneurial profits equal equation equities Evolution exchange rate regime exogenous Figure financial assets fixed exchange rate following a one-step following an increase GDP ratio government budget government debt government deficit hence implies interest payments interest rates inventories to sales investment Keynesian liabilities liquidity preference long-term bonds macroeconomic matrix Model PC monetary money balances money supply national income nominal parameters portfolio post-Keynesian post-Keynesian economics previous period production firms propensity to consume propensity to import pure government expenditures rate of interest rate of return real output real wage retained earnings sales ratio stationary steady steady-state sum to zero Table tangible capital target Tobin transactions flow matrix transactions matrix Transactions-flow matrix Treasury bills variables
References to this book
Dollarization: Lessons from Europe and the Americas Louis-Philippe Rochon,Mario Seccareccia Limited preview - 2003 |