Publication details

Stock-flow consistent modelling: An alternative approach for dynamic models

Authors

KOMÍNEK Ondřej

Year of publication 2014
Type Article in Proceedings
Conference New Economic Challenges, 5th International PhD Students Conference
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords stock-flow consistent model; flow of funds; modern monetary theory
Description This paper looks at the recent development in macroeconomic dynamic modelling. An analysis is focused on stock-flow consistent model as an alternative method to New Keynesian DSGE models. The methodology of stock-flow consistent models is based explicitly on the national accounts. This approach develops accounting view on financial assets and models behaviour of entities, typically sectors in economies. The behaviour is captured by changes in flows of funds and stocks. Due to this feature, SFC models are suitable for studying the effects of imbalances at the aggregate level, particularly possibilities and limitations of monetary and fiscal policy. The following objective of this article is to explain the structure of SFC models (the sectoral approach, transaction flow matrices) and evolutionary character of these models. Moreover are discussed issues dataset problems and agent-based model interconnection. The stock-flow consistent model opens an interesting opportunity for research, when seeking appropriate tools for successful application of modern monetary theory.
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