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posted on 16 November 2016

Stock-Flow Consistent SFC Model For Beginners

Written by , Econoblog101

Understanding financial stocks and flows is fundamental to understanding economic systems. A while ago I created the SIM(mple) model as a graphical tool on InsightMaker, which is a really great software that runs on the web for free and allows users to play around with the models and also copy them. Today I received an email informing me that the model has had 100 views - wow!

scf.model.ehnts.380x190

It is originally from the book by Godley and Lavoie (not anymore) available here. The good thing about Insightmaker is that you can try out the model with different parameter choices and hence experience it without having to use some mathematical software. I hope that more people will get to know this really easy way of understanding the mechanisms behind the very simple SFC model.

Click to access the model.

scf.model.ehnts.600x300

An earlier version of this note appeared at Econoblog101 15 November 2016.

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