francis cripps

NYT On Wynne Godley

11 September 2013

There’s a nice new article on Wynne Godley today in The New York Times. An interesting thing in the article is the mention of intuition via models while mentioning his book Monetary Economics. Why does a model matter? It explicitly details an economist’s thinking, Dr. Bezemer says. Other economists can use it. They cannot so easily […]


“It’s remarks like that which explain why people hate economists!”

1 April 2013

A lot of heterodox economists are sympathetic to Paul Krugman because he seems to have argued for fiscal expansion. Ha! First, we are in this mess because of people like Paul Krugman who has promoted free trade – which has been destructive to the world economy as a whole and has prevented debtor nations from […]


Origins Of The Sectoral Balances Identity

29 November 2012

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. It was published as Appendix C to Full Employment […]


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 […]


Recommended Readings

28 May 2012

The crisis has a lot of connections with the way Macroeconomics was done in the 1970s and this interests me a lot. Of course the equally important reason was that Nicholas Kaldor and Wynne Godley were highly involved in the public discussions. Here are some books I collected which have special importance to the Cambridge […]


G&L’s Monetary Economics – Second Edition

15 April 2012

I got my copy of Monetary Economics by Wynne Godley and Marc Lavoie yesterday. I know some people were waiting for the second edition of the book, and had postponed their purchase to get the newer edition – so they can get it now! There aren’t any changes in this edition – except for correction […]


Income And Expenditure Flows And Financing Flows

13 February 2012

In the previous two posts, I went into a description of the transactions flow matrix and the balance sheet matrix as tools for an analytic study of a dynamical study of an economy. During an accounting period, sectors in an economy are making all kinds of transactions. These can be divided into two kinds: Income […]


Same Old, Same Old

2 December 2011

John Cassidy of The New Yorker comments on the failed austerity policies in the UK: During the past eighteen months, a callow and arrogant Chancellor of the Exchequer, empowered by a hands-off Prime Minister and backed by the bulk of the country’s financial and media establishment, has needlessly brought Britain to the brink of another recession […]


Conclusion Section Of Post #1

6 August 2011

Too excited to get my blog going, I finished my first post midway. Sectoral Imbalances are of many kinds. The US private sector ran deficits for a long time and this lead to the financial crisis and the Great  Recession. Frequently, you hear about the shift in the distribution of income and this can also be studied […]


The Quick Rise And Fall Of Keynesianism

4 August 2011

Welcome to my blog! This blog post is about the Great Recession, the imbalances which led to it, the use of Keynesian principles by governments of all nations to prevent a deep implosion and how and why the Keynesian mini-revolution didn’t last long. Suddenly, nobody is asking Are We Keynesians Now? and the economics profession has […]