wynne godley

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 […]


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 […]


Holier Than Tobin?

24 August 2013

It sometimes happens that important insights of great contributors to an academic field are missed. One of the most important things in Monetary Economics is Tobin’s asset allocation theory which although is well known is sometimes poorly understood. James Tobin (Source: Econometric Theory) But sometimes a holier-than-thou attitude can lead one to miss an important and […]


Thomas Palley On International Coordination

11 July 2013

Thomas Palley has a new article Coordinate Currencies or Stagnate on international coordination of exchange rates. (h/t Matias Vernengo). He has a nice small critique of the Chicago school according to which “market forces” work toward resolving imbalances. It is great such a thing has been raised because the importance of policy coordination (in general – […]