A Simplified Stock-Flow Consistent Post-Keynesian Growth Model

A multi - sectoral version of the Post - Keynesian growth model ♦

With this inquiry, we seek to develop a disaggregated version of the post-Keynesian approach to economic growth, by showing that indeed it can be treated as a particular case of the Pasinettian model of structural change and economic expansion. By relying upon vertical integration it becomes possible to carry out the analysis initiated by Kaldor (1956) and Robinson (1956, 1962), and followed by...

Regime-changes in a Stock-flow-consistent Model

We explore the dynamical properties of the Godley-Lavoie model with a focus on Central Bank horizons. The stability properties of modes of regulation are traced from a regime of private bank money to the current crisis with the Central Bank levers of short-term bonds issue to the emerging policy regime of long-term bonds as built-in stabilizers.

Stock-flow Consistent Modeling through the Ages

The Profit-Investment-Unemployment nexus and Capacity Utilization in a Stock-Flow Consistent Model

This paper studies under which conditions the share of profit in value added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock-flow consistent model. The efficiency of demand side versus supply side economic policies (decrease of the real interest rate and/or of the real wage, i...

Volume of the steady-state space of financial flows in a monetary stock-flow-consistent model

We show that a steady-state stock-flow consistent macro-economic model can be represented as a Constraint Satisfaction Problem (CSP). The set of solutions is a polytope, which volume depends on the constraints applied and reveals the potential fragility of the economic circuit, with no need to study the dynamics. Several methods to compute the volume are compared, inspired by operations researc...