Ramanan — Francis Cripps And Marc Lavoie’s Biography Of Wynne Godley

There’s a new book, The Palgrave Companion To Cambridge Economics which features among other things biographies of Wynne Godley, Joan Robinson and Nicholas Kaldor and other notable Cambridge economists. Wynne Godley’s biography—Wynne Godley (1926-2010)—is by his closest collaborators – Francis Cripps and Marc Lavoie (pp. 929-953)….

The Case for Concerted Action
Francis Cripps And Marc Lavoie’s Biography Of Wynne Godley
V. Ramanan

Steve Roth — Why Economists Don’t Know How to Think about Wealth (or Profits) Evonomics

What's wrong with economics? "It's a dumpster fire."

Evonomics
Why Economists Don’t Know How to Think about Wealth (or Profits)

Steve Roth

Stock-flow consistent (SFC) model for beginners [***Free Tool***]

A while ago I created the SIM(mple) model as a graphical tool on InsightMaker, which is a really great software that runs on the web for free and allows users to play around with the models and also copy them. Today I received an email informing me that the model has had 100 views – wow! It is originally from the book by Godley and Lavoie (not anymore) available here. The good thing about Insightmaker is that you can try out the model with different parameter choices and hence experience it without having to use some mathematical software. I hope that more people will get to know this really easy way of understanding the mechanisms behind the very simple SFC model.

econoblog 101
Stock-flow consistent (SFC) model for beginners

Dirk Ehnts | Lecturer at Bard College Berlin

Jason Smith — An RLC circuit with R = S and L = F

SFC modeling.

Information Transfer Economics
An RLC circuit with R = S and L = F
Jason Smith

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

Jason Smith — More like stock-flow inconsistent

One (but by far not the only) tool Post Keynesians tend to use is a stock-flow consistent (SFC) analysis. My original intent was to show how these could be related to information equilibrium, but instead seem to have found a major flaw. I'd like to show that models like these can sneak in implicit assumptions under the guise of "just accounting".

TL;DR* version: Δ in SFC models has units of 1/time and therefore assumes a time scale.

What follows is from Godley-Lavoie "Monetary Economics" [pdf], specifically their model called SIM (for "simplest").… 

Information Transfer Economics
More like stock-flow inconsistent
Jason Smith

*TL;DR = "Too long, didn't read."

Book Review: Post-Keynesian Economics (Lavoie)

Like it says, book review.

Bond Economics
Book Review: Post-Keynesian Economics (Lavoie)
Brian Romanchuk

Nick Edmonds — An SFC Version of the Diamond Growth Model

A number of my posts have attempted to compare and draw parallels between very different approaches in economics. It is an exercise I find very interesting and informative. In this vein, I have recently gone about constructing a Stock-Flow Consistent (SFC) version of the Diamond growth model set out in the paper National Debt in a Neoclassical Growth Model.

The first thing to make clear is that the stocks and flows in Diamond's model are perfectly consistent, so I don't mean that I am somehow correcting accounting errors. Rather, what I have attempted to do is to restructure the model into the format typically used in post-Keynesian stock-flow models. This looks like the models that appear in Godley & Lavoie's Monetary Economics. With appropriate choice of parameter values, however, it is structurally equivalent to Diamond's neoclassical model and produces the same results.

The purpose of this exercise was to focus on the behavioural assumptions of the model and see where post-Keynesian and neoclassical views might diverge. Doing so requires "padding out" the original model a bit. Most notably, Diamond's model involves only real values - there is a real wage level, but no separate price and nominal wage levels. This doesn't fit well with a post-Keynesian worldview, so a major innovation is to turn this into a monetary model with nominal values, as well as real.

As it turns out, this is quite a useful exercise.…

Reflections on Monetary Economics
An SFC Version of the Diamond Growth Model

Nick Edmonds