Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth
This 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.
60 pages matching consumption function in this book
Results 1-3 of 60
What people are saying - Write a review
We haven't found any reviews in the usual places.
Balance Sheets Transaction Matrices and the Monetary Circuit
The Simplest Model with Government Money
13 other sections not shown
amount assumed balance sheet bank liquidity ratio base line solution behaviour bill rate capital adequacy ratio capital gains cash money central bank Chapter column consumption function current account current period debt to GDP demand disposable income economy endogenous entrepreneurial profits equal equation equities Evolution exchange rate regime exogenous expected Figure financial assets fixed exchange rate following a one-step following an increase foreign reserves GDP ratio Godley government budget government debt government deficit Haig-Simons hence higher hold implies income ratio interest payments interest rates inventories to sales investment liabilities liquidity preference long-term bonds matrix monetary money balances money supply national income nominal parameters portfolio post-Keynesian previous period propensity to consume propensity to import pure government expenditures rate of interest rate of return real consumption real output real wage retained earnings sales ratio stationary steady steady-state stock-flow Table Tobin trade Treasury bills variables