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A Stock-Flow Consistent General Framework for Formal Minskyan Analyses of Closed Economies

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  • Claudio dos Santos

Abstract

This paper reviews the general tenets of "stock-flow consistent" and the "formal Minskyan" literatures and argues that the advantages and weaknesses of the latter become clearer when analyzed with the tools of the former. It also analyzes a small but representative and influential sample of seminal "formal Minskyan" models, particularly the Taylor-Connel model, in light of a fully consistent "Minskyan artificial economy." The paper also shows these models often assume oversimplified hypotheses (that donÕt do justice to the richness of Minskyan analyses) and, more seriously, often ignore the logical implications of these hypotheses. Finally, the authors arugue that most of these problems can be tackled when "formal Minskyan" models are phrased as "closures" of the "general Minskyan" accounting framework described in the paper.

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  • Claudio dos Santos, 2004. "A Stock-Flow Consistent General Framework for Formal Minskyan Analyses of Closed Economies," Economics Working Paper Archive wp_403, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_403
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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. Eric Nasica, 2000. "Finance, Investment and Economic Fluctuations," Books, Edward Elgar Publishing, number 1564.
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    1. Claudio Dos Santos, 2004. "Keynesian Theorizing During Hard Times: SStock-Flow Consistent Models as an Unexplored 'Frontier' of Keynesian Macroeconomics'," Macroeconomics 0405023, University Library of Munich, Germany.
    2. Min-Chang Ko & Sangheon Lee, 2015. "Corporate Debt Dynamics, Capital Accumulation, and Macroeconomic Instability: A Post-Keynesian Analysis," Korean Economic Review, Korean Economic Association, vol. 31, pages 177-197.
    3. Claudio H. dos Santos, 2004. "Keynesian Theorizing During Hard Times: Stock-Flow Consistent Models as an Unexplored "Frontier" of Keynesian Macroeconomics," Economics Working Paper Archive wp_408, Levy Economics Institute.
    4. Claudio H. Dos Santos, 2004. "Keynesian Theorizing During Hard Times: Stock-Flow Consistent Models as an Unexplored 'Frontier' of Keynesian Macroeconomics," Method and Hist of Econ Thought 0406001, University Library of Munich, Germany.

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