Macroeconomic models are usually developed in a large framework that comprises hundreds of equations. Some pitfalls, however, are inevitable such as a partial failure of forecasts and some theoretical shortcomings of a large macroeconomic model (Lawson 1992 and Wallis 1989). In the early 1990s, small scale macroeconomic model (SSMM) emerged as an alternative tool for comparing the results obtai...

This paper aims to contribute the debate on US student debt situation. First, it highlights determination of labor earnings and economic activity as a function macroeconomic conditions relevance considering this endogeneity analyzing sustainability. Next, I present background loans market in US. Moreover, using Minskyian framework, argue that current situation can have adverse results activity,...

While Financial inclusion has been largely considered to play an important role eradicate poverty and boost economic prosperity, some empirical literature shown differing sentiments, suggesting that vast access finance may potentially bring about market instability the economy. This relationship between financial macroeconomic stability is in greatly under researched, from a global local perspe...

This paper introduces heterogeneous microeconomic behavior into a demand-driven stock-flow consistent model, in order to study the joint dynamics of leverage, income distribution and aggregate demand. The distinctive feature is in that the aggregation of heterogeneous agents is not performed numerically as in traditional agent-based models but by means of an innovative analytical methodology, o...

This paper investigates the interplay between monetary aggregates and the dynamics and variability of output and prices by considering both the money supplied by commercial banks as credit to firms and the fiat money created by the central bank through the quantitative easing monetary policy. The authors address this problem by means of an agentbased model and simulator, called Eurace, which is...

Life-time experiences shape macroeconomic expectations. Young people, endowed a small experience set, are particularly prone to rely on very recent data when forming expectations. I illustrate these patterns with micro survey data on inflation, stock return, and house price appreciation expectations. In the case of asset return expectations, the tendency to extrapolate from recent data makes as...

We present a model of a dynamic and complex economy in which the creation and the destruction of money result from interactions between multiple and heterogeneous agents. In the baseline scenario, we observe the stabilization of the income distribution between wages and profits. We then alter the model by increasing the flexibility of wages. This change leads to the formation of a deflationary ...

The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due to self-fulfilling expectations. In response to this concern, a growing literature has focused on the stabilizing properties of interest-rate rules whereby t...

Growth model theory has turned the focus of comparative political economy scholars on demand drivers economic growth. But while its proponents emphasize variety and inherent instability growth models, research so far been more concerned with emergence coherence stable models than in process change. We argue that change can be understood as a financial rebalancing level institutional sectors. Wh...