Peter Cooper — Short & Simple 15 – The Sectoral Balances Identity

Stocks and flows at the macro level.

heteconomist
Short & Simple 15 – The Sectoral Balances Identity
Peter Cooper

Ramanan — Erroneous Use Of The Sectoral Balances Identity [Updated]

Andrew Lilico of The Telegraph takes issue with the arguments presented using the sectoral balances identity..... Unfortunately for him, his argument is erroneous at the most elementary level.

The Case for Concerted Action
Erroneous Use Of The Sectoral Balances Identity [Updated]
Ramanan

Andrew Lilico — Can public sector austerity coincide with private sector austerity?

Andrew Lilico takes on Wynne Godley, based on his assumptions that all money is created by the private sector, so that the public sector is borrowing from the private sector, and therefore that all borrowing nets to zero in aggregate. He doesn't get consolidated non-govt net financial assets in aggregate with government providing the funding when the net is positive during a period — like some of the circuitists.

The Telegraph (UK)
Can public sector austerity coincide with private sector austerity?
Andrew Lilico | an economist with Europe Economics, and a member of the Shadow Monetary Policy Committee. He was formerly the Chief Economist of Policy Exchange.
(h/t Ash QB on FB)

Ramanan on some interesting history of economics

Contains some nice finds for those interested in the history of national accounting in economics.

The Case for Concerted Action
Random Tidbits On National Accounts And Keynesian Models Of Income And Expenditure
Ramanan

Ramanan — Origins Of The Sectoral Balances Identity

I thought I should share what I found recently about who was to state the sectoral balances identity first – since it comes across as enlightening to say the least. I found the identity in Nicholas Kaldor’s 1944 article Quantitative Aspects Of The Full Employment Problem In Britain.

The Case for Concerted Action
Origins Of The Sectoral Balances Identity
Ramanan