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 74
... consumption function ( 3.7 ) , we substitute the equality YD * = C * . Knowing that in the steady state , H = H_1 ... consumption function as a stock - flow norm The definition of the steady - state solution for household wealth is the ...
... consumption function ( 3.7 ) , we substitute the equality YD * = C * . Knowing that in the steady state , H = H_1 ... consumption function as a stock - flow norm The definition of the steady - state solution for household wealth is the ...
Page 78
... consumption , independent of current income . This is , of course , the consumption function to be found in Samuelson's elementary 45 degree - line model the workhorse of principles of macroeconomics - and in the IS - LM model - the ...
... consumption , independent of current income . This is , of course , the consumption function to be found in Samuelson's elementary 45 degree - line model the workhorse of principles of macroeconomics - and in the IS - LM model - the ...
Page 246
... Consumption function ( 7.16C ) is often to be found in mainstream text- books . It says , as interpreted from ... function , instead of a negative one , of the rate of return on wealth , given by ' m . But let us go back to equation ...
... Consumption function ( 7.16C ) is often to be found in mainstream text- books . It says , as interpreted from ... function , instead of a negative one , of the rate of return on wealth , given by ' m . But let us go back to equation ...
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 |