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 50
... money balances acquired through wages , and eventually the addi- tional money balances received on account on their dividend and interest payments . As the households get rid of their money balances , firms gradu- ally recover theirs ...
... money balances acquired through wages , and eventually the addi- tional money balances received on account on their dividend and interest payments . As the households get rid of their money balances , firms gradu- ally recover theirs ...
Page 109
... cash money balances . Errors in expectations are entirely absorbed by unexpected fluctuations in money balances . Money balances act as a buffer against mis- takes in expectations . Any mistake regarding expected disposable income is ...
... cash money balances . Errors in expectations are entirely absorbed by unexpected fluctuations in money balances . Money balances act as a buffer against mis- takes in expectations . Any mistake regarding expected disposable income is ...
Page 143
... cash money . Before we examine the various parameters of the asset demand function , one problem must be dealt with right away . The asset demand functions determine the value of money balances , bills and bonds that households would ...
... cash money . Before we examine the various parameters of the asset demand function , one problem must be dealt with right away . The asset demand functions determine the value of money balances , bills and bonds that households would ...
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 |