IDEAS home Printed from https://ideas.repec.org/a/ids/ijecac/v7y2016i3p175-188.html
   My bibliography  Save this article

The Federal Reserve-Wall Street complex

Author

Listed:
  • Amelia Correa
  • Romar Correa

Abstract

We construct generic balance sheets for the USA and a developing country. The stock-flow-consistent (SFC) framework is drawn from the Godley and Lavoie (2007) compendium. The stylised US matrix is completely financialised. The liabilities of financial institutions (FIs) are equity and their assets are the equity offerings of firms and households. Households are rentiers holding the equity of both the entities. The government oversees the operation of SFC norms. The input-output system of the developing economy is a contrast. Banks 'originate and hold' credit lines which are utilised to employ workers on projects. The private money created thereby is underwritten by state money. We consider the imperialism of the US balance sheet accounting practices on the developing country balance sheet. In particular, what are the implications for stability when 'originate and hold' transforms into 'originate and distribute' financial relationships?

Suggested Citation

  • Amelia Correa & Romar Correa, 2016. "The Federal Reserve-Wall Street complex," International Journal of Economics and Accounting, Inderscience Enterprises Ltd, vol. 7(3), pages 175-188.
    • Handle: RePEc:ids:ijecac:v:7:y:2016:i:3:p:175-188
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=79937
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecac:v:7:y:2016:i:3:p:175-188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=357 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.