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Monetary Economics
 
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Monetary Economics
An Integrated Approach to Credit, Money, Income, Production and Wealth
2nd edition
 
 
Palgrave Macmillan
 
 
 
 
 
27 Mar 2012
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£37.00
|Paperback In Stock
  
9780230301849
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DescriptionReviewsContentsAuthors

This book challenges the mainstream paradigm with the introduction of a new methodology. Economies are represented realistically in a fully articulated system of national income and flow of funds accounts. The authors study how flows of income, expenditure and production are intertwined with stocks of assets and liabilities, determining how whole economies evolve through time.

Starting with extremely simple stock-flow consistent models, the text describes a succession of increasingly complex models constructed with such rigour that, in harmony with its basis in accounting, there is always one equation which is implied logically by all the others. Readers will be able to download all the models and explore their properties for themselves.


Description

This book challenges the mainstream paradigm with the introduction of a new methodology. Economies are represented realistically in a fully articulated system of national income and flow of funds accounts. The authors study how flows of income, expenditure and production are intertwined with stocks of assets and liabilities, determining how whole economies evolve through time.

Starting with extremely simple stock-flow consistent models, the text describes a succession of increasingly complex models constructed with such rigour that, in harmony with its basis in accounting, there is always one equation which is implied logically by all the others. Readers will be able to download all the models and explore their properties for themselves.


Reviews

'The framework that Godley and Lavoie develop, with a consistent numerical and simulational handle on the various models, is a return to a majestic Wicksellian tradition…A whole generation of graduate students have been brought up on policy nihilism, bordering on paralysis in the face of policy dilemmas. A new generation, armed with the tools, concepts and models developed by Godley and Lavoie, can now return to the grand traditions of macroeconomics as an experimental science, focusing on policy.'  - K. Vela Velupillai, Fellow, Girton College, Cambridge, UK, and Professor of Economics, University of Trento, Italy
 
'Wynne Godley has been the moving force behind keeping quantitative non-mainstream macroeconomics alive and flourishing for the last several decades...His work is inspiring, and will guide policy-oriented macroeconomic modellers for decades to come.'  - Lance Taylor, Cambridge Journal of Economics

 
'...[This] clearly deserves to become a standard reference for everybody interested in SFC modelling in particular and modern macroeconomics in general. There are already first signs that other economists are indeed inspired by this way of thinking about the economy...'  - Till van Treeck, Intervention, European Journal of Economics and Economic Policies


Contents

Introduction
Balance Sheets, Transaction Matrices and The Monetary Circuit
The Simplest Model with Government Money
Government Money with Portfolio Choice
Long-Term Bonds, Capital Gains and Liquidity Preference
Introducing the Open Economy
A Simple Model with Private Bank Money
Time, Inventories, Profits and Pricing
A Model with Private Bank Money, Inventories and Inflation
A Model with both Inside and Outside Money
A Growth Model Prototype
Open Economy with Flexible Prices and Exchange Rates
General Conclusion


Authors

WYNNE GODLEY was Director of the Department of Applied Economics at the University of Cambridge, UK, from 1970 to 1987, and a Professor of Applied Economics from 1980 to 1993. Subsequently, he was a Distinguished Scholar at the Levy Economics Institute of Bard College, New York, USA, and then a Visiting Research Associate at the Cambridge Endowment for Research in Finance.
 
MARC LAVOIE is Professor in the Department of Economics at the University of Ottawa, Canada. He has written over 175 journal articles and book chapters, as well as authoring Foundations of Post-Keynesian Economic Analysis and Introduction to Post-Keynesian Economics.