Macroeconomics Without Equilibrium or Disequilibrium

Wynne Godley
Additional contact information
Wynne Godley: The Jerome Levy Economics Institute

Macroeconomics from University Library of Munich, Germany

Abstract: This paper uses a simulation model to describe the role which bank money and bank loans must play when decisions by households and firms are taken under conditions of uncertainty and when production takes time. Its main purpose is to integrate the theory of money and finance into that of income determination, in what may broadly be called the Keynesian tradition. Stocks of bank money and cash are found to be irretrievably endogenous. Great importance is attached to the accounting framework which, though simplified, comprises a comprehensive system of stocks and flows which enables sequential solutions to be found. The simulation method makes it possible to pin down exactly why the model behaves as it does. The model suggests the basis for a way of looking at the world which is fundamentally different from that used in the neo- classical paradigm.

JEL-codes: E (search for similar items in EconPapers)
Pages: 56 pages
Date: 1998-01-22
Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on PostScript; pages: 56; figures: included
References: Add references at CitEc
Citations:

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/9801/9801002.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpma:9801002

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).