It is not la vie en rose: new insights from Graziani’s theory of the monetary circuit
نویسندگان
چکیده
The aim of this paper is twofold. First, it shows how a standard stock–flow consistent model (SFCM) can be modified to embed some fundamental insights from Graziani’s theory the monetary circuit (TMC). Second, aims address common misconceptions about TMC. More precisely, argued that: (a) market-clearing price mechanism does not necessarily imply neoclassical-like closure model; (b) ways in which SFCMs and TMC define bank loans are mutually consistent, although they based on different accounting periods; (c) consumer credit final finance, initial finance; (d) paradox profit logical conundrum, but an abstract counter-factual that allows shedding light neglected role government spending; (e) overall, regarded as ‘Marxian’ rendition Keynes’s method aggregates.
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ژورنال
عنوان ژورنال: European Journal of Economics and Economic Policies: Intervention
سال: 2022
ISSN: ['2052-7772', '2052-7764']
DOI: https://doi.org/10.4337/ejeep.2022.0084