Brian Romanchuk — Quick Comment On SFC Models And Mainstream Approaches

Cullen Roche has written an introductory article on Flow of Funds approaches to economics: "Understanding Flow of Funds Accounting." He asks why (post-Keynesian) Stock-Flow Consistent (SFC) models have not caught on with the mainstream. I think this is easily explained by the buried mainstream assumption that economic models must be based on the mechanic that prices bring supply and demand into balance. The post-Keynesian SFC models (as described in my primer) call into question this role of prices. In this article, I am just commenting on why this distinction exists, and not attempting to say which is better (although long-time readers will know of my bias towards SFC models).

Bond Economics
Quick Comment On SFC Models And Mainstream Approaches
Brian Romanchuk