July 2012

More On Wynne Godley’s Methodology

22 July 2012

Matias Vernengo has a post on Stock-Flow Consistent Macroeconomics: Stock-Flow With Consistent Accounting (SFCA) Models. He has a nice way of giving a short description of pricing in the G&L models: In my view, the stock-flow and the demand driven (and I should say, the fact that price dynamics is orthogonal to the income flow determination [...]

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Martin Wolf On Wynne Godley’s Sectoral Financial Balances Approach

19 July 2012

Martin Wolf who usually writes good articles on macroeconomic developments wrote recently on the sectoral balances approach (which he uses frequently anyway). In his recent post The Balance Sheet Recession In The US he writes: … I look at this through the lens of “sectoral financial balances”, an analytical framework learned from the work of the late Wynne [...]

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A Quiz On National Accounts: Answers

15 July 2012

In my previous post, I had the following questions: Can government expenditure be greater than 100% of gdp? Can Gross Fixed Capital Formation of an economy as a whole be negative? The answer to both is yes. Commenters guessed the right answer and provided the example I was looking for (except the fourth below). Here [...]

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A Quiz On National Accounts

12 July 2012

In the following video, CNBC irritates Paul Krugman to argue against government spending which provoked Krugman to write a blog post Zombies On CNBC Krugman is asked – how high can government expenditure go – 100%? Okay two theoretical questions which are purely theoretical – nothing much to do with the discussion above. Can government [...]

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In Search Of Alexander Hamilton

10 July 2012

Earlier this year Paul Volcker said that “Europe is at an Alexander Hamilton moment”. Barry Eichengreen – who sometimes writes nicely – wrote this today in an article titled Europe’s Divided Visionaries: … One strategy assumes that Europe desperately needs the policies of this deeper union now. It cannot wait to inject capital into the [...]

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Not In His Lifetime, Says Krugman :(

10 July 2012

Paul Krugman was in Spain recently. In this video which has a lot of discussion on the European crisis, Krugman says that the ideal solution for the Euro Area will be federal but doesn’t hope to see it in his lifetime unless advances in medical sciences is made which will make him live longer. (Time: 1:22:36) [...]

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Libor, Higgs And All That

7 July 2012

Here are two very nicely written articles by the London Review of Books on the Libor (from 2008) and on the Higgs (from their blog from yesterday). What’s In A Number by Donald MacKenzie Higgs At Last by David Kaiser

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“… Step By Step, Cede Responsibilities To Europe”

6 July 2012

My previous post “Not In My Lifetime” – The Muddled Road Toward An Integrated Europe had some responses – mostly saying I was too kind to Angela Merkel and Wolfgang Schäuble and that ceding powers to a supranational authority will lead to imposing of draconian rules! Meanwhile I came across these two articles from France 24: Europe needs [...]

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