Confidence and financial crisis in a post-Keynesian stock flow consistent model

Edwin Le Heron

European Journal of Economics and Economic Policies: Intervention, 2011, vol. 8, issue 2, 361-387

Abstract: The paper aims at showing that one of the main channels by which the US 2007 financial crisis became a real and global economic crisis is the 'confidence channel', i.e. that the financial crisis affected firms, banks and households’ expectations and confidence, thus leading to what they were fearing. And I propose to model expectations and the state of confidence of private agents to use the indexes calculated by national statistical services from monthly polls.

Keywords: confidence; financial crisis; stock-flow-consistent modelling (search for similar items in EconPapers)
JEL-codes: E12 E27 E41 E43 E47 E51 E52 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (17)

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Working Paper: Confidence and financial crisis in a post-keynesian stock-flow consistent model (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:8:y:2011:i:2:p361-387

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