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 25
... balance sheet accounts , so that by combin- ing the flow - of - funds account and the national income and product account , and making a few adjustments , linked in particular to consumer durable good , it is possible to devise a matrix ...
... balance sheet accounts , so that by combin- ing the flow - of - funds account and the national income and product account , and making a few adjustments , linked in particular to consumer durable good , it is possible to devise a matrix ...
Page 27
... balance sheet accounts.3 In the case of American households , this is not likely to happen , based on the figures presented in Table 2.1 , which arise from the balance sheet of households and nonprofit organizations , as assessed by the ...
... balance sheet accounts.3 In the case of American households , this is not likely to happen , based on the figures presented in Table 2.1 , which arise from the balance sheet of households and nonprofit organizations , as assessed by the ...
Page 28
... balance sheet of firms . This will insure that the row of equities in the overall sectoral balance sheet sums to zero , as all other rows of the matrix . The balance sheet of production firms in our framework , will thus appear as shown ...
... balance sheet of firms . This will insure that the row of equities in the overall sectoral balance sheet sums to zero , as all other rows of the matrix . The balance sheet of production firms in our framework , will thus appear as shown ...
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 |