Wynne Godley and Stock-Flow Consistent (SFC) Macro Modeling — Monetary Economics

Page Under Construction. Please do not consider the following an authoritative source. You are welcome to assist – please see Getting Started for instructions.

Introduction

References

Célia Firmin, Review of Monetary Economics: An Integrated Approach to Credit, Money, Income, Production, and Wealth by Wynne Godley and Marc Lavoie (Palgrave Macmillan, Basingstoke, 2007; 576 pp.)

Wynne Godley, Towards a Reconstruction of Macroeconomics Using a Stock Flow Consistent (SFC) Model (2004)

Abstract: This paper aims to rehabilitate "stock flow consistent" (SFC) macroeconomics as a radical alternative to the neo-classical approach which has dominated the subject during the last thirty years. Commercial banks are reckoned to play a central role in the macroeconomic process because they co-ordinate all the disparate aspirations, expectations and actions of the different sectors and this is one of many ways in which the model deployed here differs, not only from mainstream models, but also from "old fashioned" Keynesian models which have largely become extinct. A comprehensive system of stock and flow accounts, using four sectors and seven financial assets, will be deployed, followed by a narrative description of a theoretical model which can be numerically solved to yield sequences evolving in real time towards steady states. Details of the model's equations are not disclosed but the paper clearly indicates an alternative methodology, while the simulations lend plausibility to some distinctive conclusions.

Wynne Godley & Marc Lavoie, Features of a Realistic Banking System Within a Post-Keynesian Stock-Flow Consistent Model (2003)

Wynne Godley and Marc Lavoie, Fiscal Policy in a Stock-Flow Consistent (SFC) Model (April 2007)

Wynne Godley and Marc Lavoie, Monetary Economic: An Integrated Approach to Credit, Money, Income, Production and Wealth, Palgrave Macmillan (2007)

Wynne Godley/ Marc Lavoie, Prolegomena to Realistic Monetary Macroeconomics: A Theory of Intelligible Sequences

Wynne Godley & Marc Lavoie, Simple Open Economy Macro With Comprehensive Accounting: A Radical Alternative To The Mundell Fleming Model (2004)

Wynne Godley & Marc Lavoie, Two-country Stock-flow-consistent Macroeconomics Using A Closed Model Within A Dollar Exchange Regime (2003)

Marc Lavoie and Gennaro Zezza, Eds., The Stock-Flow Consistent Approach: Selected Writings of Wynne Godley, Palgrave Macmillan (2011)

Bill Mitchell, Stock-flow consistent macro models