08 Aug '12, 11am

Including banks in macroeconomic models - finally

Including banks in macroeconomic models - finally

We present a reduced version of nef ’s macroeconomic model, composed of a macro “core unit” and a set of sectoral accounts that represent the agents populating the economy (non-financial firms, banks and the central bank). We offer an original tractation of the banking system and its interactions with the “real” economy. We explicitly model the crucial role that banks play in the creation of credit by operating a distinction between planned expenditures and current income. We show that a strong connection exists between the process of credit creation and the growth experienced by the economy: a confident banking system, willing to grant credit to firms for productive investments, is a necessary prerequisite for the economy to prosper. We argue that modelling the monetary dynamics of the economy as driven by the decisions of the private banking system - rather than the cent...

Full article: http://www.neweconomics.org/blog/2012/08/08/including-ban...

Tweets

Molex banks on acquisitions, new product wins f...

eetimes.com 09 Aug '12, 4pm

NEW YORK—After capping off its fiscal 2012 year with lower-than-expected revenue, executives at Molex Inc. said that there...

Audi Announces Exclusive R8 Models for U.S. Market

Audi Announces Exclusive R8 Models for U.S. Market

justluxe.com 08 Aug '12, 6pm

Audi will create 2012 R8 models exclusively for the U.S. market. The company announced today that 50 Audi R8 vehicles will...

Win your own mascot figurine thanks to @corgi. ...

corgi.co.uk 08 Aug '12, 4pm

Calling all fans of Wenlock and Mandeville the Official London 2012 Olympic and Paralympic mascots! We've teamed up with T...