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

Author(s): Ondřej Komínek
Subject(s): Business Economy / Management, Economic policy, Methodology and research technology, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: stock-flow consistent model; flow of funds; modern monetary theory;
Summary/Abstract: 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.

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