This document contains notes from a lecture on stock-flow consistent macroeconomic modeling. It includes an introduction to SFC models, their advantages and disadvantages. It then presents the basic setup of an SFC model, including equations for aggregate supply, aggregate demand, households, firms and equilibrium. It shows the dynamic effects of shocks to the interest rate and investment parameter on the model. It concludes by assigning homework to analyze these shocks using an Excel model and references a textbook on monetary economics.
Intermediate Accounting, Volume 2, 13th Canadian Edition by Donald E. Kieso t...
Ec6012 Lecture 4
1. EC6012 Lecture 3
Stephen Kinsella
SFC Setup
Homework & Blogs
EC6012 Lecture 4 References
A First SFC Model
Stephen Kinsella
Dept. Economics,
University of Limerick.
stephen.kinsella@ul.ie
January 18, 2008
10. EC6012 Lecture 3
Download Excel Sheet
Stephen Kinsella
Show a change in interest rate on bonds from 0.07 to
0.1. What effect does this have in u-vh space? SFC Setup
Homework & Blogs
Reset the model. Show a change in the value of α from
References
0.3 to 0.7.
Due up on the blogs next week.
Read Godley and Lavoie (2006, Chapter 3).
11. References EC6012 Lecture 3
Stephen Kinsella
Wynne Godley and Marc Lavoie. Monetary Economics An SFC Setup
Integrated Approach to Credit, Money, Income, Homework & Blogs
Production and Wealth. Palgrave-Macmillan, 2006. URL References
http://www.palgrave.com/products/Catalogue.
aspx?is=0230500552.