Adam Kaczynski has recently completed his PhD with a thesis on “A Post-Keynesian stock-flow consistent model of the Global Financial Crisis and the Age of Secular Stagnation”.
The PDF is available here, and the corresponding code can be downloaded from Github.
Abstract:
This thesis is an attempt to build a dynamic, long run, Stock-Flow Consistent, Post Keynesian model of the Global Financial Crisis and Secular Stagnation. While multiple New Keynesian Dynamic Stochastic General Equilibrium models of these historic phenomena already exist, these models are built on theoretical foundations which have been rejected by Post Keynesians because of their inadequacy. The Sraffian Supermultiplier has been chosen as the theoretical framework, isolating parts of the economy generating instability from the parts which may set the trend in the long run. The model uses a continuous-time framework and is expressed as a differential-algebraic system of equations. It is simulated using an Open Source package OpenModelica which is widely used in empirical and technical sciences for simulating dynamic systems. While not calibrated by regression, and more theoretical than econometric, it nevertheless reproduces multiple macroeconomic phenomena and stylised facts which have puzzled mainstream economists. This research is an attempt to advance the macroeconomic modelling methodology and contribute to understanding macroeconomic processes by demonstrating how complex phenomena can emerge when simple parts of the economy interact. The understanding is based on sound macroeconomic theories built by Marx, Keynes, Kalecki, Sraffa and contemporary Post Keynesian economists.
Monday, March 15, 2021
A Post-Keynesian stock-flow consistent model of the Global Financial Crisis and the Age of Secular Stagnation — Adam Kaczynski
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