Econintersect: Marc Lavoie, University of Ottawa, presented a workshop on Stock-flow analysis for economic system modeling, 22 March 2014 at the University of Missouri Kansas City. In simple terms, this is the application of the principles of accounting to the analysis of the function of macroeconomic systems. In this workshop the general standard textbook description of such accounting systems is introduced. What is missing from the standard textbook presentation is the inclusion of monetary systems from the model (banking, finance, credit money creation). This is systematically introduced during this workshop, along with the historical development of accounting-based models in general.
Video after the Read more >> jump.
Wynne Godley, one of the “fathers” of sector balance accounting modeling.
(Godley was mentor to Marc Lavoie.)
This is a 2 1/2 hour video and includes the discussion questions from the participants and Prof. Lavoie’s responses.
Hat tip to New Economic Perspectives.