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Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth
Monetary Economics An Integrated Approach to Credit Money Income Production and Wealth Author:Marc Lavoie, Wynne Godley This book challenges the mainstream paradigm, which is based on the inter-temporal optimisation of welfare by individual agents. Lavoie introduces a new methodology for studying how it is institutions create flows of income, expenditure and production together with stocks of assets and liabilities, thereby determining how whole economies evolve ... more »through time. Monetary economies are realistically represented in a fully articulated system of national income and flow of funds accounts. Starting with extremely simple stock flow consistent (SFC) models, the text describes a succession of increasingly complex models, using a conventional narrative style backed up by equations which bring precision to individual propositions. However, underlying each narrative there exists a simulation model constructed with such rigour that, in harmony with its basis in comprehensive accounting, there is always one equation which is implied logically by all the others. Solutions of these models are used to illustrate, with charts, the ways in which economies evolve. Readers will be able to download all the models and explore their properties for themselves.« less