wynne godley

Derailed: Wynne Godley On The Euro Area

20 February 2015

I am in favour of Britain having much closer ties with other European countries, provided that appropriate institutions are created and the whole thing is brought under effective political control. But I have never been able to understand what it is that those who support the Maastricht Treaty think they are going to get out […]


Greg Mankiw And Empirics

24 May 2014

Greg Mankiw wonders if teaching students empirics is feasible and answers in negative: Noah Smith says introductory economics needs to be more empirical. I understand his argument, and have some sympathy with it, but I wonder if the substantial change he seems to be proposing is practical. Economists usually do empirical work with statistical tools […]


Steve Keen And Sectoral Balances

19 May 2014

Steve Keen has a new article on sectoral balances here. First apologies in advance for sometimes criticizing heterodox economists more but needless to say, such criticisms are of a totally different nature than criticisms of mainstream economists. Anyway, I am surprised at why Keen mixes accounting identities, especially when it involves banks in the analysis. […]


Tobinesque Models

15 February 2014

Paul Krugman writes today on his blog on James Tobin’s work: Let me offer an example of how this ended up impoverishing macroeconomic analysis: the strange disappearance of James Tobin. In the 1960s Tobin developed and elaborated a sophisticated view(pdf) of financial markets that offered insights into things like the role of intermediaries, the effects of […]


On Models

12 January 2014

Ryan Decker has a blog post on DSGE models. Although I don’t like DSGE models, I think he has something nice to say about modeling: We must get econ pundits to understand that we’re all using models, including non-economist bloggers, even if they’re not written down as mathematical expressions. Writing a model down in its […]


Augusto Graziani, R.I.P.

5 January 2014

Augusto Graziani has died. One of Graziani’s main themes runs as follows. In order to finance production, the entrepreneur must obtain the funds necessary to pay his workforce in advance of sales taking place. Starting from scratch, he must borrow from banks, at the beginning of each production cycle, the sum which is needed in order to pay wages, […]


Some Nice Words On Wynne Godley And Monetary Economics

30 October 2013

I am reading this book The Oxford Handbook of Post-Keynesian Economics, Volume 1: Theory and Origins and it has some nice chapters! In his chapter Postkeynesian Precepts For Nonlinear, Endogenous, Nonstochastic, Business Cycle Theories, K. Vela Velupillai has some nice words on Wynne Godley and his book Monetary Economics co-authored with Marc Lavoie: (snipping via amazon.com)


Flow Of Funds And Keynesian Macroeconomics

15 September 2013

The subject of money, credit and moneyflows is a highly technical one, but it is also one that has a wide popular appeal. For centuries it has attracted quacks as well as serious students, and there has too often been difficulty in distinguishing a widely held popular belief from a completely formulated and tested scientific […]


The Rate Of Saving In Wynne Godley’s Models [Updated]

13 September 2013

In Krugman’s blog post which is dismissive of Wynne Godley’s work (referred in my previous post) he (Krugman) makes the following claim: First involved consumption spending. Conventional Keynesian consumption functions suggested that the savings rate would rise as incomes rose — and this wasn’t just the Keynesian interpreters, Keynes himself made the same claim. which […]


Wynne Godley: The Keynes Of Flow Of Funds

13 September 2013

Monetary and financial data, so far as they are based on institutional balance sheets and prices in organized markets, are abundant. Modern machines have made it possible to improve, refine and expand the compilation of these data, and also to seek empirical regularities in financial behavior in the magnitude of individual observations. On the aggregate […]