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The MONIAC Updated for the Era of Permanent Financial Crises

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  • Robert Leeson

Abstract

This paper updates the Phillips Machine (or «MONIAC») by including a malfunctioning financial sector. An augmented Phillips model is outlined which can provide a solution to the problem of unfunded retirement income liabilities (via James Meade's Consumed Income Tax Structure) whilst providing an uninterruptible flow of savings into the capital goods sector (thus insulating the macroeconomy from crises originating in the financial sector).

Suggested Citation

  • Robert Leeson, 2011. "The MONIAC Updated for the Era of Permanent Financial Crises," Economia politica, Società editrice il Mulino, issue 1, pages 103-130.
    • Handle: RePEc:mul:jb33yl:doi:10.1428/35930:y:2011:i:1:p:103-130
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    1. Markowitz, Harry M, 1991. "Foundations of Portfolio Theory," Journal of Finance, American Finance Association, vol. 46(2), pages 469-477, June.
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    More about this item

    Keywords

    B31; E31;

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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