Sebastian Valdecantos Halporn and Gennaro Zezza — Reforming the International Monetary System: a Stock-Flow Consistent Approach

FYI. Links, if you have access or are willing to pay.

Reforming the international monetary system: a stock-flow-consistent approachSebastian Valdecantos Halporn and Gennaro ZezzaJournal of Post Keynesian Economics, vol. 38, n.2, 2015, pp. 167-191

Abstract: The emergence and persistence of large trade imbalances as well as the volatility of financial flows among countries have been attributed, at least in part, to the inadequacy of the current international monetary system after the breakdown of Bretton Woods. From a different perspective, the current eurozone crisis is also the result, in our view, of a flawed institutional setting. These problems call for reforms to mitigate or avoid the recessionary bias that is the outcome of current systems, as Keynes predicted in the discussion preceding the Bretton Woods agreements. In this paper we briefly review the evidence on international imbalances, and survey the rapidly growing literature on the subject. We introduce a set of models based on the stock-flow-consistent approach pioneered by Godley (1999) and Lavoie and Godley (2003). We discuss how to use these models to explore potential reform of the international monetary system.

The first version of this paper dates back to 2011… but it has been written to provide a benchmark model so that other researchers could expand on it, so it should not become obsolete too quickly!

sfc-models.net
Reforming the International Monetary System: a Stock-Flow Consistent Approach

Sebastian Valdecantos Halporn and Gennaro Zezza

John Weeks — Debt Default is a Solution, Not a Problem

All this leads to an obvious conclusion–debt default serves as the solution to an otherwise intractable problem, an unsustainable foreign depth. The problem is not default, the problem is the absence of an international mechanism to bring it about in an orderly manner. But the United Nations Conference on Trade and Development has proposed such a mechanism, which I will discuss in another article.

TripleCrisis
Debt Default is a Solution, Not a Problem

John Weeks

Report — Reforming the international monetary system

Some prominent economists argue that failures in the international monetary system are the root cause of the global crisis. This column introduces a new eReport arguing that, at the very least, the international monetary system is inefficient and destabilising for the global economy. It proposes a number of reforms, the common thread of which is to increase the conditional supply of liquidity and reduce its unconditional demand.

Introducing a new eReport: Reforming the international monetary system

by Emmanuel Farhi, Pierre-Olivier Gourinchas, and Hélène Rey at VOXeu. The authors are all associated with CEPR, of which Dean Baker is co-director.