Words to the Wise

I've been updating my SSRN page with new working papers, rather than this blog, for a few weeks. There are a few reasons for this, mostly around time management. This blog, the IrishEconomy blog, the SSRN page, and the Geary Working paper series, all take some of the same data. As the IrishEconomy blog and the SSRN have a wider readership, it's natural that this would be the forum to suffer.

Anyway, I'll try to remedy that with some new work. Here's a paper I presented this weekend at the INET conference organised in New York. It was a great conference, and I learned a lot. The paper's details are below.

The crisis has exposed the failure of economic models to deal sensibly with endogenously generated crises propagating from the financial sectors to the real economy, and back again. The goal of this paper is to review the method of stock flow consistent modeling to highlight areas in which it is deficient. I argue there is a fruitful research agenda in shoring up these deficiencies. The objective of stock flow modeling should be the ability to practically model unstable macro-economies, and in particular their interactions with the financial sector. These models should provide ‘Words to the Wise’, and until they do, they are just thought experiments.

2 Replies to “Words to the Wise”

  1. Verry nice article, thoroughly enjoyed reading it. Similar to my thoughts.

    Claudio Dos Santos had something similar to say. He said (in his "three essays") that Godley-type models are similar to working out the rules of a chess game and the openings and a few characteristic end games but its difficult to catalog all games.

    I thoroughly enjoy reading G&L's Monetary Economics as it gives me the benefit of knowing what goes on in their minds as much as describing economic systems.

    PS: Have a blog now!

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