Brian Romanchuk — Finding The Solution In A Simple SFC Model

Stock-Flow Consistent models are the mathematical workhorse of much of modern post-Keynesian thought (including Modern Monetary Theory). These models are fairly easy to work with, but there are a lot of details in how the model solution is determined. In this article, I discuss the solution for the simplest model with government money in the textbook Monetary Economics by Godley and Lavoie -- model SIM -- although I have simplified things even further (model SIMplest?)….

Bond Economics
Finding The Solution In A Simple SFC Model
Brian Romanchuk