Brian Romanchuk — "An Introduction to SFC Models Using Python" Paperback Edition Published

My latest book: An Introduction to SFC Models Using Python is now available as a paperback edition.…

Stock-Flow Consistent (SFC) models are a preferred way to present economic models in the post-Keynesian tradition. This book gives an overview of the sfc_models package, which implements SFC models in Python. The approach is novel, in that the user only specifies the high-level parameters of the economic model, and the framework generates and solves the implied equations. The framework is open source, and is aimed at both researchers and those with less experience with economic models. This book explains to researchers how to extend the sfc_models framework to implement advanced models. For those who are new to SFC models, the book explains some of the basic principles behind these models, and it is possible for the reader to run example code (which is packaged with the software online) to examine the model output....

Bond Economics
"An Introduction to SFC Models Using Python" Paperback Edition Published
Brian Romanchuk

Brian Romanchuk — SFC Models And Introductory MMT-Style Fiscal Analysis

The usefulness of Stock-Flow Consistent (SFC) models is that they allow us to illustrate concepts in economics without relying solely on verbal descriptions.

In this article, I will discuss my interpretation of some of the ideas floating around in Modern Monetary Theory (MMT). I will note that these are my interpretations of statements made by others, illustrated by an extremely simple model. The key is that even simple models can be used to clarify our thinking.

This article is only a partial response to an article by Gerard MacDonell. He is unhappy about some of the writings of Professor Bill Mitchell, one of the leading MMT economists.

I am not going to argue on Mitchell's behalf, rather I just want to offer some analysis that touches on some of the technical issues Gerard made. He noted that Federal taxation and spending are roughly similar, so how does that square with MMT pronouncements about the independence of taxation and spending? This outcome is not surprising, as it is exactly the sort of thing that is predicted by SFC models -- and MMT mathematical analysis of the economy uses SFC models.

For those if you who are not fully up-to-date on post-Keynesian factionalism, please note that SFC models were meant to be a mathematical lingua franca for post-Keynesian economics. In other words, MMT economists use SFC models, but they are not exclusive to MMT.

Since I want to work with my Python modelling framework here, and it currently cannot support full business cycle analysis (extensions will be added later), I cannot do complete justice to Functional Finance. Therefore, I have to just focus on a couple of more basic ideas about fiscal polict

1. there is little relationship between taxes and spending; and
2. governments cannot control the budget deficit.

I will address these here in turn....

Bond Economics
SFC Models And Introductory MMT-Style Fiscal Analysis
Brian Romanchuk

Brian Romanchuk — Primer: Understanding Stock – Flow Norms

The models I present here are based on those within the text Monetary Economics by Godley and Lavoie, from Chapter 2. I have simplified the notation. It should be noted that these concepts are similar to those found within earlier Keynesian models. Since I want to focus on how stock-flow norms work within these models, I do not want to get distracted with the history of the concept. The text discusses the history as well as giving further references.

Bond Economics
Primer: Understanding Stock – Flow Norms
Brian Romanchuk

sfc-models.net — New papers using the SFC approach

Like it says, a list of papers and links.

sfc-models.net
New papers using the SFC approach

Posted by Gennaro Zezza

New Release — Contributions to SFC Modeling

Contributions to Stock-Flow Modeling
Essays in Honor of Wynne Godley
Edited by Dimitri Papadimitriou and Gennaro Zezza
Palgrave Macmillan (December 2011)

Ramanan amplifies...
Books In Honour Of Wynne Godley

Collection of Wynne Godley's writings released

The Stock-Flow Consistent Approach
Selected Writings of Wynne Godley
Edited by Marc Lavoie and Gennaro Zezza
Palgrave Macmillan (2011)

This book is the intellectual legacy of Wynne Godley, the famous British economist who was the head of the Department of Applied Economics at the University of Cambridge for nearly 20 years, after having been deputy director of the Economic section at the UK Treasury. These selected writings are useful not only as a summary of the evolution of Godley's analysis, but also equip economists with new tools for the achievement of sustainable economic growth. Professor Godley's work always originated from puzzles in the real world economy, rather than from curiosities in economic models, and his work has retained its practicality; the stock-flow models have proved to be effective in predicting recent recessions.

These essays present Godley's challenge to accepted wisdom in the field of macroeconomic modelling, which, in his opinion, did not reflect the economics that he had learned by working on practical matters for the Treasury in the 1960s. Godley developed post-Keynesian traditions and created models which fully integrate theory with the financial system and real demand and output. — Publisher's description