A Primer on SFC Models. Cláudio H. Dos Santos (IPEA and Levy Economics Institute) Presentation at Unicamp – October 2, 2009. The “ Unexplored Frontier ” of Keynesian Theorizing ? (1-Davidson) .
Cláudio H. Dos Santos
(IPEA and Levy Economics Institute)
Presentation at Unicamp – October 2, 2009
What is the time horizon involved in this (flow) equilibrium? One year? Two years? A decade?
In reality, this kind of reasoning is static and short run.
If the economy is moving away from any given steady-state, this means that stock-flow and/or stock-stock ratios are changing continuously – in other words, the balance of economic power (or fragility) is changing.
A given configuration of effective demand is deeemed unsustainable if the economy is moving away from the steady-state – which means that some stock-flow or stock-stock ratios are exploding.
Short period (dis)equilibrium