Asjad Naqvi has developed the Mathematica code for most Godley-Lavoie models, and put them up so that they can be used interactively.
SFC models in Python
Here is a letter from Kenn Tamara, who developed the models in Godley-Lavoie using Python:
I was reading “Monetary Economics” by Godley and Lavoie and came across the sfc-models.net website. I have taken your eViews models and reimplemented them using Python (running the experiments and generating the figures).
Everything is open-source and is written with a package that I developed to help specify and solve the models. The models are implemented as iPython notebooks for easier viewing and can be found at:
https://github.com/kennt/monetary-economicsInformation on the pysolve package used to specify and solve the models can be found at:
https://github.com/kennt/pylinsolve(A little warning, the code for pysolve is still under development and there isn’t that much documentation yet)
I hope that the python implementation is useful and would like to contribute it to sfc-models.net.
Thank you,
Kenn Takara
Interactive SFC models
I recently discovered that Kevin W. Capehart has written a piece of code in Mathematica from one of my Eviews files for the Godley – Lavoie Monetary economics book, and turned it into a CDF, to illustrate the paradox of thrift
To run the simulation you need to install the free Wolfram reader, and activate it.
This little tool is potentially very useful in exploring stock-flow models, which are tipically non linear, and therefore difficult to solve analitically. Creating a nice interface which allows the user to check model responses to different values of parameters and exogenous variables could help find the range of parameter values for which the model is producing stable (or unstable etc) solutions.
The Paradox of Thrift in a Simple Stock-Flow Consistent Model from the Wolfram Demonstrations Project by Kevin W. Capehart
New papers using the SFC approach
Ayoze Alfageme kindly offered to update our references database on publications adopting the stock-flow-consistent approach.
The following is a preliminary list of recent papers, that will soon be included in our database:
- Le Heron, E. (2013). Macro-foundations of micro and micro-foundations of macro: Income distribution, increasing risks and household behaviours. Working paper (Limerick SFC Workshops).
- Ehnts, D. H. (2013). Macroeconomic imbalances in an open economy stock-flow consistent model., working paper
- Bernardo, G., & Campiglio, E. (2013). A simple model of income, aggregate demand and the process of credit creation by private banks. Empirica, 1-25.
- Mazier, J., & Valdecantos, S. (2013). A Multi-Speed Europe: is it viable? A Stock-Flow Consistent Approach. Working paper
- Belabed, C. A., Theobald, T., & van Treeck, T. (2013). Income Distribution and Current Account Imbalances. Hans-Böckler-Stiftung. Working paper
- Dafermos, Y., & Papatheodorou, C. Modelling the effects of functional on personal income distribution: A flow-of-funds approach. Working paper
- Kinsella, S. (2013). Are there policy alternatives to Ireland’s austerity?, Working paper.
- Carvalho, L., & Di Guilmi, C. (2013). Macroeconomic instability and microeconomic financial fragility: a stock-flow consistent approach with heterogeneous agents, Working paper.
- de Jager, P. (2014), Fair value accounting, fragile bank balance sheets and crisis: A model, Accounting, Organizations and Society, Volume 39, Issue 2
- Caiani, A., Godin, A. and Lucarelli, S. (2014), A Stock Flow Consistent Analysis of a Schumpeterian Innovation Economy. Metroeconomica, 65: 397–429. doi: 10.1111/meca.12045
- Costa Lima, B. and Grasselli, M.R. (2014). Destabilizing a stable crisis: Employment persistence and government intervention in macroeconomics, Structural Change and Economic Dynamics, Volume 30, September 2014, Pages 30–51
- van Suntum, U. (2014). Böhm-Bawerk meets Keynes: What does determine the interest rate, and can the latter become negative? (No. 65). CAWM Discussion Paper, Centrum für Angewandte Wirtschaftsforschung Münster.
- Caverzasi, E., & Godin, A. (2014). Financialization and the sub-prime crisis: a Stock-Flow Consistent model, Working paper.
- van Suntum, U. (2013). Long Term Effects of Fiscal and Monetary Policy in a Stock-Flow-Consistent Macro-Framework, journal Credit and Capital Markets, Volume 46, issue 2, p 181-212
- Nikolaidi, M. (2014), Margins of Safety and Instability in a Macrodynamic Model with Minskyan Insights (May 2014). Structural Change and Economic Dynamics, Vol. 31, 2014.
- Boik, J.C. (2014). First Microsimulation Model of a LEDDA Community Currency–Dollar Economy, Working paper
- Nikolaidi, M. (2014). Securitisation, wage stagnation and financial fragility: A stock-flow consistent perspective, Working paper
- Caverzasi, E., & Godin, A. (2014). Post-Keynesian stock-flow-consistent modelling: a survey. Cambridge Journal of Economics.
SFC at the Minsky Summer Seminar
This year, as in the previous years, Marc Lavoie and Gennaro Zezza will be presenting the Stock-Flow-Consistent modeling approach at the Minsky Summer Seminar at the Levy Institute.
Applied Macro-modelling: Fully Scalable models
Winter School on Agent Based and Stock Flow Consistent modelling.
Limerick, January 30th – February 7th
If you are a highly motivated student of economics at masters or Ph.D. level, or you are working with a research center or a public institution and want to spend one week studying, researching, discussing, and exchanging experiences in the nice atmosphere of an Irish University campus nurtured by international experts and fellow students from all around the world, our winter school offers you 7 working days of lectures, seminars, and labs on Stock-Flow Consistent and Agent Based approaches. For more information, see http://s120.ul.ie/drupal/winterSchool and Applied Macro-modelling – Call For Application.
SFC models discussed in Berlin
The annual conference of the Research Network Macroeconomic and Macroeconomic Policies in Berlin had two sessions dedicated to stock-flow models, plus other papers using this approach in other sessions.
The program is available here
Using FoF data
An excellent piece of analysis of Flow of Funds data at the Bank of England:
Richard Barwell and Oliver Burrows, “Growing fragilities? Balance sheets in The Great Moderation”, Financial Stability Paper No. 10 – April 2011
Flow of funds at the ECB
This article, “Flow-of-funds analysis at the ECB”, provides an excellent technical description of the European system for flow-of-fund statistics, and some good examples of how they are used at the ECB.
I would recommend it for anyone interesed in anyone doing SFC empirical modeling. It is a pity that the authors have not discovered yet the work of Godley and the book Monetary economics, which is well known at the Bank of England.