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A Post-Keynesian Stock-Flow Consistent Macroeconomic Growth Model: Preliminary Results

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  • Claudio H. dos Santos
  • Gennaro Zezza

Abstract

Stock-flow consistent models may be considered the rallying point for heterodox authors interested in modeling macroeconomic relations, since these models incorporate real and financial relations in an entirely consistent way, therefore providing macroeconomic constraints to individual behavior. The present model expands on the Godley-Lavoie model of growth, which was based on a two-asset world, with only bank deposits and the shares issued by private corporations. The present model incorporates the financial relations among the central bank, private banks, and the fiscal policy of government, showing the endogeneity of money under different assumptions on banks' behavior. The model is used to analyze the relationship between the distribution of income and growth, and to study the impact of monetary policy.

Suggested Citation

  • Claudio H. dos Santos & Gennaro Zezza, 2004. "A Post-Keynesian Stock-Flow Consistent Macroeconomic Growth Model: Preliminary Results," Economics Working Paper Archive wp_402, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_402
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    1. Domenico Delli Gatti & Mauro Gallegati & Hyman P. Minsky, 1994. "Financial Institutions, Economic Policy, and the Dynamic Behavior of the Economy," Economics Working Paper Archive wp_126, Levy Economics Institute.
    2. Fernando J. Cardim de Carvalho, 1992. "Mr Keynes And The Post Keynesians," Books, Edward Elgar Publishing, number 79.
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    Cited by:

    1. Eugenio Caverzasi & Antoine Godin, 2013. "Stock-flow Consistent Modeling through the Ages," Economics Working Paper Archive wp_745, Levy Economics Institute.
    2. Edwin Le Héron, 2008. "Fiscal and Monetary Policies in a Keynesian Stock-flow Consistent Model," Post-Print halshs-00388042, HAL.
    3. repec:bas:econth:y:2013:i:1:p:15-25 is not listed on IDEAS
    4. Alexander Lipton, 2016. "Modern Monetary Circuit Theory, Stability Of Interconnected Banking Network, And Balance Sheet Optimization For Individual Banks," International Journal of Theoretical and Applied Finance (IJTAF), World Scientific Publishing Co. Pte. Ltd., vol. 19(06), pages 1-57, September.
    5. LE HERON Edwin & MAROUANE Amine, 2015. "A history of contemporary post Keynesian SFC model," Cahiers du GREThA (2007-2019) 2015-15, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Amine MAROUANE, 2018. "An Analysis of Tunisian Monetary Policy in a Post-Keynesian Stock-Flow Consistent Macroeconomic Growth Model," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 213-227, June.
    7. Alexander Lipton, 2015. "Modern Monetary Circuit Theory, Stability of Interconnected Banking Network, and Balance Sheet Optimization for Individual Banks," Papers 1510.07608, arXiv.org.
    8. Edwin Le Heron, 2012. "Financial Crisis, State of Confidence, and Economic Policies in a Post Keynesian Stock-flow Consistent Model," Chapters, in: Louis-Philippe Rochon & Salewa ‘Yinka Olawoye (ed.), Monetary Policy and Central Banking, chapter 6, Edward Elgar Publishing.
    9. repec:bas:econth:y:2013:i:1:p:3-14 is not listed on IDEAS
    10. Puchet Anyul, Martín, 2008. "Ejercicios de política económica y sistemas de cuentas de los sectores institucionales," Estudios Estadísticos 4768, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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