A special issue of EJEEP on SFC modeling

The European Journal of Economics and Economic Policies: Intervention has just published a special issue dedicated to Post-Keynesian stock-flow consistent modeling.
Introduction by Antoine Godin, papers:
Huub Meijers, Joan Muysken and Olaf Sleijpen
– The deposit financing gap: another Dutch disease
Saed Khalil and Stephen Kinsella
– Bad banks choking good banks: simulating balance sheet contagion
Eugenio Caverzasi and Antoine Godin
– Financialisation and the sub-prime crisis: a stock-flow consistent model
Jacques Mazier and Sebastian Valdecantos
– A multi-speed Europe: is it viable? A stock-flow consistent approach
Biagio Ciuffo and Eckehard Rosenbaum
– Comparative numerical analysis of two stock-flow consistent post-Keynesian growth models

A new paper

Yannis Dafermos (2012) “Liquidity preference, uncertainty, and recession in a stock-flow consistent model”, Journal of Post Keynesian Economics, 34 (4), 749-776.

DOI: 10.2753/PKE0160-3477340407
This paper develops a stock-flow consistent model that explicitly integrates the role of liquidity preference and perceived uncertainty into the decision-making process of households, firms, and commercial banks. Emphasis is placed on (1) the link between the precautionary motive and the asset choice of the private sector, (2) the effect of perceived uncertainty on the desired margins of safety and borrowing, and (3) the impact of financial obligations on the liquidity preference of households and firms. Performing a simulation experiment, the paper illuminates the channels through which a rise in perceived uncertainty is likely to set off a recessionary process.
Keywords: liquidity preference, perceived uncertainty, recessionary process, stock-flow consistent modeling