A New, Simple SFC Open Economy Framework

Olivier Blanchard has made the point that macroeconomic modelling should become more pluralistic: ‘we need different types of macroeconomic models for different purposes (…) No model can be all things to all people’ (Blanchard 2018). Among the five classes of models that Blanchard envisages, there should be the so-called ‘toy […]

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Price mechanism and endogenous productivity in an open economy stock‐flow consistent model

Abstract – This paper combines a Stock‐Flow Consistent open economy two‐country model with the Verdoorn‐Kaldor law, which posits a positive relationship between the rate of growth of output and productivity growth. The model shows the role of endogenous productivity as a shock magnifier and underlines the limits of the mechanisms […]

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Cross-border financial flows and global warming in a two-area ecological SFC model

Abstarct – with Matteo Deleidi, Riccardo Pariboni and MarcoVeronese Passarella – Socio-Economic Planning Sciences – We develop an ecological open-economy stock-flow consistent model that enables testing cross-area interactions among productive sectors, financial markets, social groups and the ecosystem. We argue that green financial investments can bring about unwanted ecological implications. […]

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Assessing the Marshall–Lerner condition within a stock-flow consistent model

Abstract – with Giuseppe Fontana and Marco Veronese Passarella – Cambridge Journal of Economics – We derive the general equilibrium condition for the terms of trade in a two-country economy model. We show that the Marshall–Lerner condition is only a special case of this condition, in which a full exchange […]

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Productivity growth, Smith effects and Ricardo effects in Euro Area’s manufacturing industries

Abstract – with Antoine Godin, Stefano Lucarelli and Marco Veronese Passarella – Metroeconomica – We analyse the determinants of labour productivity across (a sample of) EA member states. We focus on the divergent dynamics before and after the financial crisis, and of core countries relative to peripheral countries. We ground […]

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Frontiers of Heterodox Macroeconomics

It’s now available “Frontiers of Heterodox Macroeconomics” (edited by Philip Arestis and Malcolm Sawyer. Palgrave Macmillan). The purpose of the volume is to review the ‘state of the art’ in heterodox macroeconomics, its strengths and weaknesses and future directions. The book also features a chapter on “Stock-Flow Consistent Dynamic Models” […]

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