IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v34y2022i3p504-533.html
   My bibliography  Save this article

A New, Simple SFC Open Economy Framework

Author

Listed:
  • Emilio Carnevali

Abstract

The paper presents a simple Stock-Flow Consistent open economy model with flexible exchange rates. It can reproduce the same dynamics and results of the flexible exchange rates ‘benchmark’ model by Godley and Lavoie [2007b. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth. London, UK: Palgrave MacMillan]. The latter is considered the ‘centre of gravity’ of SFC open economy literature. Yet the new model uses only one-third of the equations of the original one and features a different mechanism of determination of the exchange rate. Its small size and its flexibility make the model suitable both for didactic purposes and for extensions with further building blocks to address a variety of research topics.

Suggested Citation

  • Emilio Carnevali, 2022. "A New, Simple SFC Open Economy Framework," Review of Political Economy, Taylor & Francis Journals, vol. 34(3), pages 504-533, July.
    • Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:504-533
    DOI: 10.1080/09538259.2021.1899518
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09538259.2021.1899518
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538259.2021.1899518?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Debin Ma & Jie Zhang & Ziyi Wang & Dongqi Sun, 2022. "Spatio-Temporal Evolution and Influencing Factors of Open Economy Development in the Yangtze River Delta Area," Land, MDPI, vol. 11(10), pages 1-24, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:504-533. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.