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A Stock-Flow Consistent General Framework for Minskyan Analysis of Closed Economics

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  • Claudio H. Dos Santos

    (Levy Economics Institute)

Abstract

This paper reviews the general tenets of 'stock-flow consistent' and the 'formal Minskyan' literatures and argues that the advantages and weaknesses of the latter become clearer when analyzed with the tools of the former. It also analyzes a small but representative and influential sample of seminal 'formal Minskyan' models, particularly the Taylor- O'Connel model, in light of a fully consistent 'Minskyan artificial economy.' The paper also shows these models often assume oversimplified hypotheses (that don't do justice tothe richness of Minskyan analyses) and, more seriously, often ignore the logical implications of these hypotheses. Finally, the authors arugue that most of these problems can be tackled when 'formal Minskyan' models are phrased as 'closures' of the 'general Minskyan' accounting framework described in the paper.

Suggested Citation

  • Claudio H. Dos Santos, 2004. "A Stock-Flow Consistent General Framework for Minskyan Analysis of Closed Economics," Macroeconomics 0402028, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0402028
    Note: Type of Document - pdf; pages: 30
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0402/0402028.pdf
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    References listed on IDEAS

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    6. Duncan K. Foley, 2010. "Hyman Minsky and the Dilemmas of Contemporary Economic Method," Chapters, in: Dimitri B. Papadimitriou & L. Randall Wray (ed.), The Elgar Companion to Hyman Minsky, chapter 9, Edward Elgar Publishing.
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    8. Patterson, K D & Stephenson, M J, 1988. "Stock-Flow Consistent Accounting: A Macroeconomic Perspective," Economic Journal, Royal Economic Society, vol. 98(392), pages 787-800, September.
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    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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