stock flow coherence

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 […]


Books In Honour Of Wynne Godley

4 January 2012

There are two new books in honour of Wynne Godley and they are out now The first one – edited by Marc Lavoie and Gennaro Zezza – has selected articles and papers by Wynne Godley, and carefully chosen. It’s available at, but not yet on Here’s the book’s website on Palgrave Macmillan and […]


Near-Orwellian Abuse Of Language

10 December 2011

Kevin O’Rourke of Oxford University has a post on Project Syndicate, correctly titled A Summit to the Death, in which he nicely summarizes the recent EU “summit to end all summits” held at Brussels. He says With this in mind, the most obvious point about the recent summit is that the “fiscal stability union” that […]


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 […]