This book challenges the mainstream paradigm with the introduction
of a new methodology. Economies are represented realistically in a
fully articulated system of national income and flow of funds
accounts. The authors study how flows of income, expenditure and
production are intertwined with stocks of assets and liabilities,
determining how whole economies evolve through time.
Starting with extremely simple stock-flow consistent models, the
text describes a succession of increasingly complex models
constructed with such rigor that, in harmony with its basis in
accounting, there is always one equation which is implied logically
by all the others. Readers will be able to download all the models
and explore their properties for themselves.
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