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. |
From inside the book
Results 1-3 of 89
Page 58
... economy with government money and no portfolio choice 3.2.1 Assumptions Let us start with the simplest meaningful model that can be built - Model SIM , for simplest . The economy is closed to the outside world : there are neither ...
... economy with government money and no portfolio choice 3.2.1 Assumptions Let us start with the simplest meaningful model that can be built - Model SIM , for simplest . The economy is closed to the outside world : there are neither ...
Page 170
... Economy 6.1 A coherent framework This chapter extends the closed economy framework developed in previ- ous chapters to describe two economies which trade merchandise with one another . Our methodology differs from the usual textbook ...
... Economy 6.1 A coherent framework This chapter extends the closed economy framework developed in previ- ous chapters to describe two economies which trade merchandise with one another . Our methodology differs from the usual textbook ...
Page 171
... economy ( Model REG ) North South Central households households Government bank Σ Cash money + HN + HS -H 0 Bills + BN + BS -B + Bcb 0 Wealth ( balancing item ) -VN -VS -Vg 0 0 Σ 0 0 0 0 0 ... Economy 171 The matrices of a two-region economy.
... economy ( Model REG ) North South Central households households Government bank Σ Cash money + HN + HS -H 0 Bills + BN + BS -B + Bcb 0 Wealth ( balancing item ) -VN -VS -Vg 0 0 Σ 0 0 0 0 0 ... Economy 171 The matrices of a two-region economy.
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 |