Stock Flow Consistent Modeling

On March 22, 2014, Marc Lavoie of University of Ottawa presented a workshop on Stock Flow Consistent Modeling at University of Missouri Kansas City. Prof. Lavoie graciously provided his slides and they available below the video.

Prof. Lavoie’s references to the book the samples come from are referring to “Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth” that he and Wynne Godley wrote.

5 responses to “Stock Flow Consistent Modeling

  1. Thanks for the post, I’ve always wanted to find some in depth, good info on SFCM but it’s been difficult to find much on the internet.

  2. Very interesting final comment.

  3. Samuel Conner

    Cities and counties could be modeled as small open economies employing a foreign currency. I wonder if models of this kind could be adapted with some degree of precision to predict the course of local economic variables and tax revenues under various fiscal policies. Perhaps there are equilibria in which “aggressive” public investment by the local budget-constrained fiscal authority increases tax revenue over time by more than the cost of the investment.

    It’s over the top by present standards, but such tools might be useful to evaluate the effects of local implementations of MMT-related concepts, such as local fiscal authorities issuing tax credits to fund purchases from the local private sector, pulling demand from the local public sector from future into the present, and perhaps stimulating the local economy somewhat through a multiplier effect.

  4. These two Lavoie videos were fabulous. Thank you for filing and posting them. And thank you to Mark Lavoie for the slides.

  5. Correction: filming, not filing.