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 161
... behaviour does not necessarily occur in all countries , but Sood shows that it describes fairly well the evolution ... behaviour can be easily modelled within the frame- work of Model LP in LP3 . This behaviour is described by equations ...
... behaviour does not necessarily occur in all countries , but Sood shows that it describes fairly well the evolution ... behaviour can be easily modelled within the frame- work of Model LP in LP3 . This behaviour is described by equations ...
Page 175
... behaviour of households of the North from that of households in the South so the various parameters describing consumer behaviour ( α1 and a2 ) and portfolio behaviour ( λ0 , λ1 and λ2 ) , as they appear in equations ( 6.9 ) and ( 6.10 ) ...
... behaviour of households of the North from that of households in the South so the various parameters describing consumer behaviour ( α1 and a2 ) and portfolio behaviour ( λ0 , λ1 and λ2 ) , as they appear in equations ( 6.9 ) and ( 6.10 ) ...
Page 225
... behaviour of the various agents . We start with the behaviour of households , namely their consumption behaviour . The proposed consumption function , equation ( 7.16 ) , is slightly different from the one that we have used in all ...
... behaviour of the various agents . We start with the behaviour of households , namely their consumption behaviour . The proposed consumption function , equation ( 7.16 ) , is slightly different from the one that we have used in all ...
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 |