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 162
... steady - state solution to the model . The system does tend towards a long - run equilibrium , but this steady - state solution is not independent of the path taken by the system . The steady state depends on the past history of the ...
... steady - state solution to the model . The system does tend towards a long - run equilibrium , but this steady - state solution is not independent of the path taken by the system . The steady state depends on the past history of the ...
Page 227
... steady state 7.4.1 Income in the steady state We now explore the steady - state solutions of our model . Because the model is so simple , it is possible to obtain analytically the steady - state solutions of the main variables . The steady ...
... steady state 7.4.1 Income in the steady state We now explore the steady - state solutions of our model . Because the model is so simple , it is possible to obtain analytically the steady - state solutions of the main variables . The steady ...
Page 228
... steady state , so that stocks do not change while flows are kept constant . The fact that household saving is zero in the steady state implies that once this state has been reached , household consumption must be equal to dis- posable ...
... steady state , so that stocks do not change while flows are kept constant . The fact that household saving is zero in the steady state implies that once this state has been reached , household consumption must be equal to dis- posable ...
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 |