A Prototype Regional Stock-Flow Consistent Model

Created
Sat, 16/04/2022 - 02:22
Updated
Sat, 16/04/2022 - 02:22
Starting from the seminal works of Wynne Godley (1999; Godley and Lavoie 2005, 2007a, 2007b), the literature adopting stock-flow consistent (SFC) models for two or more countries has been flourishing, showing that consistently taking into account real and financial markets of two open economies will generate different results with respect to more traditional open economy models. However, few contributions, if any, have modeled two regions in the same country, and our paper aims at filling this gap.