Monetary Economics

1. Front Matter

   Pages i-xliii

   PDF

2. Introduction

   • Wynne Godley, Marc Lavoie

   Pages 1-22

3. Balance Sheets, Transaction Matrices and the Monetary Circuit

   • Wynne Godley, Marc Lavoie

   Pages 23-56

4. The Simplest Model with Government Money

   • Wynne Godley, Marc Lavoie

   Pages 57-98

5. Government Money with Portfolio Choice

   • Wynne Godley, Marc Lavoie

   Pages 99-130

6. Long-term Bonds, Capital Gains and Liquidity Preference

   • Wynne Godley, Marc Lavoie

   Pages 131-169

7. Introducing the Open Economy

   • Wynne Godley, Marc Lavoie

   Pages 170-216

8. A Simple Model with Private Bank Money

   • Wynne Godley, Marc Lavoie

   Pages 217-249

9. Time, Inventories, Profits and Pricing

   • Wynne Godley, Marc Lavoie

   Pages 250-283

10. A Model with Private Bank Money, Inventories and Inflation

    • Wynne Godley, Marc Lavoie

    Pages 284-313

11. A Model with both Inside and Outside Money

    • Wynne Godley, Marc Lavoie

    Pages 314-377

12. A Growth Model Prototype

    • Wynne Godley, Marc Lavoie

    Pages 378-444

13. A More Advanced Open Economy Model

    • Wynne Godley, Marc Lavoie

    Pages 445-492

14. General Conclusion

    • Wynne Godley, Marc Lavoie

    Pages 493-500

15. Back Matter

    Pages 501-530

    PDF

This book challenges the mainstream paradigm, based on the inter-temporal optimisation of welfare by individual agents. It introduces a methodology for studying how it is institutions which create flows of income, expenditure and production together with stocks of assets and liabilities, thereby determining how whole economies evolve through time.

• growth
• Inflation
• monetary economics
• money
• production

'The framework that Godley and Lavoie develop, with a consistent numerical and simulational handle on the various models, is a return to a majestic Wicksellian tradition A whole generation of graduate students have been brought up on policy nihilism, bordering on paralysis in the face of policy dilemmas. A new generation, armed with the tools, concepts and models developed by Godley and Lavoie, can now return to the grand traditions of macroeconomics as an experimental science, focusing on policy.' K. Vela Velupillai, Fellow, Girton College, Cambridge, UK, and Professor of Economics, University of Trento, Italy

'Wynne Godley has been the moving force behind keeping quantitative non-mainstream macroeconomics alive and flourishing for the last several decades...His work is inspiring, and will guide policy-oriented macroeconomic modellers for decades to come.' Lance Taylor, Cambridge Journal of Economics

'...[This] clearly deserves to become a standard reference for everybody interested in SFC modelling in particular and modern macroeconomics in general. There are already first signs that other economists are indeed inspired by this way of thinking about the economy...' - Till van Treeck, Intervention, European Journal of Economics and Economic Policies

WYNNE GODLEY was formerly Director of the Department of Applied Economics at the University of Cambridge, UK, from 1970 to 1994, and subsequently a Professor of Applied Economics. During this period, from 1987-1988, he was also a Visiting Professor at University of Aalborg, Denmark. Between 1994 and 2001, Professor Godley was a Distinguished Scholar at the Levy Economics Institute of Bard College, New York. Professor Godley joined CERF as a Visiting Research Associate in 2002.

MARC LAVOIE is Professor in the Department of Economics at the University of Ottawa, Canada. He has been Visiting Professor at Curtin University, Australia, and at the universities of Bordeaux, Grenoble, Lille, Limoges, Nice, Rennes, Paris-1 and Paris-13. His main research areas are in post-Keynesian and monetary economics. He has written over 130 journal articles or book chapters as well as authoring Foundations of Post-Keynesian Economics and co-edited Central Banking in the Modern World.

Policies and ethics