Despite being arguably one of the most active areas of research in heterodox macroeconomics, the study of the dynamic properties of stock-flow consistent (SFC) growth models of financially sophisticated economies is still in its early stages. This paper attempts to offe... View more
1 See Taylor (2004); Lavoie and Godley (2001-2002); Zezza and Dos Santos (2004); Foley and Taylor (2004); Dos Santos (2005) and (2006), among many others. The current literature builds on the seminal work of, among others, Tobin (1980) and (1982) and Godley and Cripps (1983). See Dos Santos (2006) for a detailed discussion of these authors' contributions and Dos Santos (2005) for a discussion of the related “Minskyan” literature of the 1980s1990s. The seminal work of Moudud (1998) with SFC models in the tradition of classical economists is also worth mentioning. A recent major contribution has been provided by Godley and Lavoie (2007).
2 A notable exception being the theoretical models in Taylor (2004).
3 Dos Santos (2006).
4 Such as Davidson (1972); Godley (1999); Minsky (1975); and Tobin (1982).
Asimakopulos, A. 1991. Keynes's General Theory and Accumulation. Cambridge: Cambridge University Press.
Backus, D., W. Brainard, G. Smith, and J. Tobin. 1980. “A Model of the U.S. Financial and Nonfinancial Economic Behavior.” Journal of Money, Credit, and Banking 12(2): 259.
Davidson, P. 1972. Money and the Real World. Armonk, NY: M.E. Sharpe.
Delli Gatti, D., M. Gallegati, and H. Minsky. 1994. “Financial Institutions, Economic Policy and the Dynamic Behavior of the Economy.” Working Paper 126. Annandale-on-Hudson, NY: The Levy Economics Institute. October.
Dos Santos, C. 2005. “A Stock-Flow Consistent General Framework for Formal Minskyan Analyses of Closed Economies.” Journal of Post-Keynesian Economics 27(4): 711.
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