Wynne Godley – A Bibliography

Papers and books

1964 (with C. Gillion) ‘Measuring National Product.’ National Institute Economic Review 27 (February): 61–67. (with C. Gillion) ‘Pricing Behaviour in the Engineering Industry.’ National Institute Economic Review 28 (May): 50–52. (with J.R. Shepherd) ‘Long-Term Growth and Short-Term Policy.’ National Institute Economic Review 29 (August): 26–38. (with D.A. Rowe) ‘Retail and Consumer Prices 1955–1963.’ National Institute Economic Review 30 (November): 44–51.

1965 (with W.A.B. Hopkin) ‘An Analysis of Tax Changes.’ National Institute Economic Review 32 (May): 33–42. (with J.R. Shepherd) ‘Forecasting Imports.’ National Institute Economic Review 33 (August): 35–42. (with C. Gillion) ‘Pricing Behaviour in Manufacturing Industry.’ National Institute Economic Review 33 (August): 43–47.

1972 (with William D. Nordhaus) ‘Pricing in the Trade Cycle.’ Economic Journal 82 (327) (September): 853–882. (with J. Rhodes) ‘The Rate Support Grant System.’ Proceedings of a Conference on Local Government Finance, Institute of Fiscal Studies, Publication n.10.

1973 (with T. Francis Cripps) ‘Balance of Payments and Demand Management.’ and Cambridge Economic Bulletin, n.82 (January).

1974 ‘Demand, Inflation and Economic Policy.’ London and Cambridge Economic Bulletin, n.84 (January). (with Francis Cripps) ‘Budget Deficit and Demand Management.’ London and Cambridge Economic Bulletin, n.84 (January). ‘The Concept of a Par Economy in Medium-Term Analysis.’ In G.D.N. Worswick and F.T. Blackbaby (eds.) The Medium Term: Models of the British Economy (London: Heinemann).

255 256 Wynne Godley – A Bibliography

1975 (with A. Wood) ‘Profits and Stock Appreciation.’ Economic Policy Review, n.1 (February).

1976 ‘Costs, Prices and Demand in the Short Run.’ In M.J.C. Surrey (ed.) Macroeconomic Themes, Edited Readings in Macroeconomics with Commentaries (Oxford: ), pp.306–309. (with T. Francis Cripps) ‘A Formal Analysis of the Cambridge Economic Policy Group Model.’ Economica 43(172) (November): 335–348. ‘The Strategic Problems of Economic Policy.’ Economic Policy Review, n.2 (March): 1–19. (with T. Francis Cripps; Martin J. Fetherston) ‘What Is Left of New Cambridge?.’ Chapter 6, Economic Policy Review, n.2 (March): 46–49. ‘The Measurement and Control of Public Expenditure.’ Chapter 8, Economic Policy Review, n.2 (March): 58–63.

1977 ‘Inflation in the .’ In Krause, Lawrence B. and Salant, Walter S. (eds.) Worldwide Inflation: Theory and Recent Experience (Washington D.C., Brookings Institution). (with R. May) ‘The Macroeconomic Implications Of Devaluation And Import Restriction”, Economic Policy Review, n.3 (March), chapter 2: 32–42. (with A. McFarquhar; D. Silvey) ‘The Cost of Food and Britain’s Membership of The EEC.’ Economic Policy Review, n.3 (March), chapter 3: 43–46. (with Christopher Taylor) ‘Measuring the Effect of Public Expenditure.’ In M. Posner (ed.) Public Expenditure (Cambridge: Cambridge University Press).

1978 (with Martin J. Fetherstone) ‘‹New Cambridge› Macroeconomics and Global Mon- etarism: Some Issues in the Conduct of UK Economic Policy.’ In K. Brunner and A.H. Meltzer (eds) Public Policies in Open Economies, Carnegie-Rochester Conference Series on Public Policy, vol. 9 (1): 33–65. (with T. Francis Cripps) ‘Control of Imports as a Means to Full Employment and the Expansion of World Trade: the UK’S Case.’ Cambridge Journal of , 2 (3) (September) pp.327–334. (with Ken J. Coutts; William D. Nordhaus) Industrial Pricing in the United Kingdom (Cambridge: Cambridge University Press). (with T. Francis Cripps; Martin J. Fetherstone) ‘Simulations with the CEPG Model.’ In M. Posner (ed.) Demand Management (London: Heinemann). (with R. Bacon; A. McFarquhar) ‘The Direct Costs to Britain of Belonging To the EEC.’ Economic Policy Review, n. 4 (March), chapter 5: 44–49.

1979 ‘Britain’s Chronic Recession – Can Anything Be Done?.’ In W. Beckerman (ed.) Slow Growth in Britain (Oxford: Clarendon Press): 226–235. Wynne Godley – A Bibliography 257

‘The System of Financial Transfers in the EEC’ in Whitby, M. (1979) The Net Cost and Benefit of EEC Membership: a Workshop Report, (Ashford Kent: Centre for European Agricultural Studies, Wye College), Seminar Paper 7: 20–33.

1981 ‘Monetarism in Three Countries: United Kingdom.’ In D. Crane (ed.), Beyond the Monetarists: Post-Keynesian Alternatives to Rampant Inflation, Low Growth and High Unemployment (Toronto: James Lorimer): 36–41.

1983 ‘Keynes and the Management of Real National Income and Expenditure.’ In D. Worswick and J. Trevithick (eds.) Keynes and the Modern World (Cambridge: Cambridge University Press): 135–156. (with T. Francis Cripps) Macroeconomics (London: Fontana). (with Anyadike-Danes) ‘Nominal Income Determination, Financial Assets and Liabilities and Fiscal Policy.’ Brazilian Review of Econometrics 3(2): 105–130.

1984 ‘Confusion in Economic Theory and Policy—Is There a Way Out?.’ In J. Corn- wall (ed.) After Stagflation: Alternatives to Economic Decline (Oxford: Basil Blackwell):63–85.

1985 (with Ken J. Coutts; Graham D. Gudgin) ‘Inflation Accounting of Whole Economic System.’ Studies in Banking and Finance, vol. 9(2) (June):93–114. ‘Unemployment in Europe: the Strategic Problem of the Mid Eighties.’ In Neuer Protektionismus in der Weltwirtschaft und EG-Handelspolitik: Jahreskolloquium: 99–108.

1987 (with Michael Anyadike-Danes) ‘A Stock Adjustment Model of Income Determi- nation with Inside Money and Private Debt.’ In M. De Cecco and J.P. Fitoussi (eds.) Monetary Theory and Economic Institutions (London: Macmillan):95–120. (with Nicos M. Christodoulakis) ‘Macroeconomic Consequences of Alternative Trade Policy Options.’ Journal of Policy Modeling 9(3) (Fall): 405–436.

1988 ‘The Sensibility of Contemporary Institutions.’ Theology 91(740) (March):89–94. ‘Manufacturing and the Future of the British Economy’ In T. Baker and P. Dunne (eds.) The British Economy After Oil: Manufacturing or Services? (London, New York, and Sydney: Croom Helm, in association with Methuen): 5–14.

1989 (with Gennaro Zezza) ‘Foreign Debt, Foreign Trade and Living Conditions, with Special Reference to Denmark.’ Nationalokonomisk Tidsskrift 127(2): 229–235. 258 Wynne Godley – A Bibliography

(with Michael Anyadike-Danes) ‘REal Wages and Employment: A Sceptical View of Some Recent Empirical Work”, The Manchester School of Economic and Social Studies 57(2) (June): 172–187. (with Michael Anyadike-Danes) ‘Real Wages and Employment: Response to Nickell’s Comment.’ The Manchester School of Economic and Social Studies 57(3) (September): 285. ‘The British Economy during the Thatcher Era.’ Economics 25(108) (Winter): 159–162. (with Ken J. Coutts) ‘The British Economy Under Mrs Thatcher.’ The Political Quarterly 60(2), (April-June):137–151.

1990 (with Ken J. Coutts; Robert Rowthorn; Gennaro Zezza) ‘Britain’s Economic Prob- lems and Policies in the 1990s.’ Economic Study n.6, London, Institute for Public Policy Research (IPPR). (with Ken J. Coutts) ‘Prosperity and Foreign Trade in the 1990s: Britain’s Strategic Problem.’ Oxford Review of Economic Policy 6(3) (Autumn): 82–92. ‘The British Economy under Mrs. Thatcher: A Rejoinder.’ The Political Quarterly 61(1) (January): 101–102. ‘When the party had to stop.’ Professional Observer, (May): 32–37.

1992 (with Gennaro Zezza) ‘A Simple Real Stock Flow Model Illustrated with the Danish Economy.’ In H. Brink (ed.) Themes in Modern Macroeconomics, (London and Basingstoke: Macmillan): 140–179. ‘Godley, Wynne (born 1926).’ In P. Arestis and M. Sawyer (eds.), A Biographical Dictionary of Dissenting Economists (Aldershot: Edward Elgar): 193–201. ‘Britain and the Danger of the EMU.’ Samfundsokonomen, n.7 (November). (with Ken J. Coutts) Does Britain’s Balance of Payments Matter Any More?.’ In J. Michie (ed.) The Economic Legacy: 1979–1992, (London: Academic Press): 60–67. (with Ken J. Coutts; J.G. Palma) ‘The British Economy under Mrs. Thatcher.’ Economic Bulletin for Latin America. The Godley Papers: Economic Problems and Policies in the 1980s and 90s, (London: New Statesman and Society).

1993 ‘Time, Increasing Returns and Institutions in Macroeconomics.’ In S. Biasco, A. Roncaglia and M. Salvati (eds.) Market and Institutions in Economic Development: Essays in Honour of Paolo Sylos Labini, (New York: St. Martins Press): 59–82.

1994 (with William Milberg) ‘US Trade Deficits: The Recovery’s Dark Side?’ Challenge 37(6) (June): 40–47. (with Bob Rowthorn) ‘Appendix; The Dynamics of Public Sector Deficit and Debt.’ In J. Michie and J. Grieve Smith (eds), Unemployment in Europe (London: Academic Press): 199–206. Wynne Godley – A Bibliography 259

1995 ‘The U.S. Balance of Payments, International Indebtedness, and Economic Policy.’ Levy Institute Public Policy Brief, n.23.

1996 ‘America’s Unaccountable Admiration for Mrs Thatcher’s economics.’ In J. Eatwell (ed.), Global Unemployment: Loss of Jobs in the ‘90s (Armonk, N.Y.: M.E. Sharpe): 21–40.

1997 (with George McCarthy) ‘The Boskin Commission’s Trillion-Dollar Fantasy.’ Challenge 40(3) (May-June): 14–21. (with George McCarthy) ‘The Boskin Commission’s Trillion-Dollar Fantasy: Erra- tum.’ Challenge 40(4) (July-August, p. 108. ‘The Hole in the Treaty.’ In P. Gowan and P. Anderson (eds.), The Question of Europe (London and New York: Verso Books): 173–177. ‘The United Kingdom and the Community Budget.’ In R.T. Griffiths (ed.), The Economic Development of the EEC: Economic Development of Modern Europe Since 1870, vol. 12 (Edward Elgar: Cheltenham): 427–441.

1998 (with George McCarthy) ‘Fiscal Policy Will Matter..’ Challenge 41 (1) (January- February): 38–54. ‘Using Figures to Guide Macroeconomic Policy.’ In I. Begg and S.G.B. Henry (eds), Applied Economics and Public Policy (Cambridge: Cambridge University Press): 258–263.

1999 (with Bill Martin) ‘America’s New Era.’ Economic Outlook, 24 (1) (October):14–19. (with L. Randall Wray) ‘Can Goldilocks Survive?.’ Levy Institute Policy Notes, 1999/4. ‘How negative can US saving get?.’ Levy Institute Policy Notes, 1999/1. ‘Money and Credit in a Keynesian Model of Income Determination.’ Cambridge Journal of Economics 23(4) (July): 393–411. ‘Seven Unsustainable Processes: Medium Term Prospects and Policies for the US and the World.’ Levy Institute Strategic Analysis, January.

2000 ‘Drowning in Debt.’ Levy Institute Policy Notes, 2000/6. ‘Interim Report: Notes on the US Trade and Balance of Payments Deficits.’ Levy Institute Strategic Analysis, January. (with L. Randall Wray) ‘Is Goldilocks Doomed?.’ Journal of Economic Issues 34(1) March: 201–206. 260 Wynne Godley – A Bibliography

2001 (with Alex Izurieta) “As the Implosion Begins...? Prospects and Policies for the US Economy: A Strategic View”, Levy Institute Strategic Analysis, July. (with Alex Izurieta) ‘”As the Implosion Begins...?”: A Rejoinder to Goldman Sach’s J. Hatzius’ “The Un-Godley Private Sector Deficit” in US Economic Analyst (27 July)..’ Levy Institute Strategic Analysis, August. ‘Fiscal Policy to the Rescue.’ Levy Institute Policy Notes, 2001/1. ‘The Developing Recession in the United States.’ Banca Nazionale del Lavoro Quarterly Review 54(219) (December) pp. 417–425. (with Alex Izurieta) ‘The Developing US Recession and Guidelines For Policy.’ Levy Institute Strategic Analysis, October. (with ) ‘Kaleckian Models of Growth in a Coherent Stock-Flow Mon- etary Framework: A Kaldorian View.’ Journal of Post Keynesian Economics 24(2) (Winter), 2001–2002: 277–311. ‘Godley, Wynne (born 1926).’ In P. Arestis and M. Sawyer (eds.), A Biographi- cal Dictionary of Dissenting Economists, Second Edition (Cheltenham: Edward Elgar).

2002 (with Anwar Shaikh) ‘An Important Inconsistency at the Heart of the Standard Macroeconomic Model.’ Journal of Post Keynesian Economics 24(3) (Spring): 423–441. ‘Kick-Start Strategy Fails to Fire Sputtering Us Economic Motor.’ Levy Institute Policy Notes, 2002/1. (with Alex Izurieta) ‘Strategic Prospects and Policies for the US economy.’ Levy Institute Strategic Analysis, April. (with Alex Izurieta) ‘The Case for a Severe Recession.’ Challenge 45(2) (April): 27–51.

2003 (with Alex Izurieta) ‘Coasting on the Lending Bubble. Both in the UK and the US.’ Cambridge Endowment for Research in Finance Strategic Analysis. “The US Economy: A Changing Strategic Predicament”, Levy Institute Strategic Analysis, March. ‘Sauver Masud Kahn.’ Revue française de psychanalyse 67(3): 1015–1028.

2004 ‘Commentary to: Anne-Marie Sandler, "The Case of Masud Khan: Institutional Responses to Boundary Violations".’ International Journal of Psycho-Analysis 85(1): 27–44. (with Dimitri B. Papadimitriou; Anwar M. Shaikh; Claudio H. Dos Santos; Gen- naro Zezza) ‘Is Deficit Financed Growth Limited? Policies and Prospects in an Election Year”, Levy Institute Strategic Analysis, April. (with Alex Izurieta; Gennaro Zezza) ‘Prospects and Policies for the US economy: Why Net Exports Must Now Be the Motor for US Growth.’ Levy Institute Strategic Analysis, August. ‘Weaving Cloth from Graziani’s Thread: Endogenous Money in a Simple (but Complete) Keynesian Model.’ In R. Arena and N. Salvadori (eds.), Money, Wynne Godley – A Bibliography 261

Credit and the Role of the State: Essays in Honour of Augusto Graziani (Aldershot: Ashgate): 127–135. ‘Corrigenda: Money and Credit in a Keynesian Model of Income Determination.’ Cambridge Journal of Economics 28(3) (May): 469. (with Alex Izurieta) ‘The US Economy: Weaknesses of the "Strong" Recovery.’ Banca Nazionale del Lavoro Quarterly Review 57(229) (June): 131–139. (with Alex Izurieta) ‘L’economia statunitense: debolezza della “forte” ripresa.’ Moneta e Credito 57(226) (June): 151–160. (with Alex Izurieta) ‘Fragilités de la reprise économique.’ Problèmes économiques,# 2861.

2005 ‘Commentaire à: Anne-Marie Sandler, Réponses institutionnelles aux transgres- sions: le cas de Masud Khan.’ L’Année Psychanalytique Internationale:15–31. ‘Imbalances Looking for a Policy.’ Levy Institute Policy Notes, 2005/4. ‘Some Unpleasant American Arithmetic.’ Levy Institute Policy Notes, 2005/5. (with Dimitri B. Papadimitriou; Claudio H. Dos Santos; Gennaro Zezza) ‘The United States and Her Creditors: Can the Symbiosis Last?”, Levy Institute Strategic Analysis, September. (with Marc Lavoie) ‘Comprehensive Accounting in Simple Open Economy Macroeconomics with Endogenous Sterilization or Flexible Exchange Rates”, Journal of Post Keynesian Economics 28(2) (Winter), 2005–2006: 241–276

2006 (with Gennaro Zezza) “Debt and Lending: A Cri de Coeur”, Levy Institute Policy Notes, 2006/4. (with Marc Lavoie) “Features of a Realistic Banking System within a Post-Keynesian Stock-Flow Consistent Model”, in M. Setterfield (ed.), Complexity, Endoge- nous Money and Macroeconomic Theory: Essays in Honour of Basil J. Moore (Cheltenham: Edward Elgar): 251–268.

2007 (with Marc Lavoie) : An Integrated Approach to Credit, Money, Income, Production and Wealth (Basingstoke: Palgrave Macmillan). (with Marc Lavoie) ‘A Simple Model of Three Economies with Two Currencies: The Eurozone and the USA.’ Cambridge Journal of Economics 31(1) (January): 1–23. (with Dimitri B. Papadimitriou; Greg Hannsgen; Gennaro Zezza) ‘The US Econ- omy: Is There a Way Out of the Woods?.’ Levy Institute Strategic Analysis, November. (with Dimitri B. Papadimitriou; Gennaro Zezza) ‘The US Economy: What’s Next?.’ Levy Institute Strategic Analysis, April.

2008 (with Dimitri B. Papadimitriou; Gennaro Zezza) ‘Prospects for the United States and the World: A Crisis That Conventional Remedies Cannot Resolve.’ Levy Institute Strategic Analysis, December. 262 Wynne Godley – A Bibliography

2009 ‘The Developing Recession in the United States.’ PLS Quarterly Review 62(248–251): 87–95. (with Alex Izurieta) ‘The US Economy: Weaknesses of the "Strong" Recovery.’ PSL Quarterly Review 62(248–251): 97–105. (with Alex Izurieta) ‘L’economia statunitense: debolezza della “forte” ripresa.’ Moneta e Credito 62(245–248): 91–100.

Working papers (with Christopher Taylor) ‘Public Spending and Private Demand.’ Economics Reprint No. 339, 1971. (with T. Francis Cripps) ‘Local Government Finance and Its Reform: A Critique of the Layfield Committee’s Report.’ Working paper, Department of Applied Economics, 1976. (with T. Francis Cripps) ‘The Planning of Telecommunications in the United Kingdom.’ Working paper, 1978. (with Ken J. Coutts) ‘Introduction to a Synthesis of Macroeconomic Theory Based on Tobin’s Nobel Lecture.’ Department of Applied Economics working paper, 1984. (with Ken J. Coutts) ‘Outline for a Reconstructed Basis for Macroeconomic Theory.’ University of Cambridge Department of Applied Economics working paper, 1984. (with Nicos M. Christodoulakis) ‘A Dynamic Model for the Analysis of Trade Pol- icy Options.’ University of Cambridge Department of Applied Economics working paper, 1986. (with Ken J. Coutts; Robert Rowthorn; Terry S. Ward) ‘The British Economy: Recent History and Medium Term Prospects.’ Working paper, 1986. (with Gennaro Zezza) ‘A Simple Real Stock Flow Monetary Model of the Italian Economy.’ Working paper, Department of Applied Economics, 1986. (with Ken J. Coutts; Juan Carlos Moreno-Brid) ‘Industrial Pricing in UK Manufac- turing Industry under Conditions of "Stagflation".’ University of Cambridge Department of Applied Economics working paper n. 8781, May 1987. (with Michael Anyadike-Danes; Ken J. Coutts) ‘IS-LM and Real Stock Flow Models: A Prelude to Applied Macroeconomic Modelling.’ Working paper, 1987. (with Gennaro Zezza) ‘A Simple Real Stock Flow Model Illustrated with the Dan- ish Economy.’ University of Cambridge Department of Applied Economics working paper n. 8901, February 1989. ‘Time, Increasing Returns and Institutions in Macroeconomics.’ University of Cambridge Department of Applied Economics working paper n. 9023, May 1990. ‘Britain and the Danger of EMU’ and ‘A Macro View of the Danish Economy.’ University of Cambridge Department of Applied Economics working paper n. 9111, April 1991. ‘US Foreign Trade, the Budget Deficit and Strategic Policy Problems: A Background Brief”, Levy Institute Working paper, n. 138, 1995. ‘A Simple Model of the Whole World with Free Trade, Free Capital Movements, and Floating Exchange Rates.’ Unpublished manuscript, Levy Institute of Economics, 1996. Wynne Godley – A Bibliography 263

‘Money, Finance and National Income Determination: An Integrated Approach.’ Levy Institute Working papers, n. 167, June 1996. ‘Macroeconomics without Equilibrium or Disequilibrium.’ Levy Institute Working papers, n. 205, August 1997. (with Bill Martin) ‘America and the World Economy.’ Research Group Occasional Paper no.3, Phillips & Drew, December, 1998. (with Anwar Shaikh) ‘An Important Inconsistency at the Heart of the Standard Macroeconomic Model.’ Levy Institute Working papers n. 326, May 1998. ‘Open Economy Macroeconomics Using Models of Closed Systems.’ Levy Institute Working papers, n. 281, August 1999. 1 (with Bill Martin)’America’s New Era.’ Phillips & Drew Research Group Occasional Paper NO. 7, September 1999. (with Marc Lavoie) ‘Kaleckian Models of Growth in a Stock-Flow Monetary Frame- work: A Neo-Kaldorian Model.’ Levy Institute Working papers n. 302, June 2000. (with Alex zurieta) ‘Strategic Prospects for the US economy: A New Dilemma.’ Cambridge Endowment for Research in Finance Working Paper Series, No 4, University of Cambridge, Cambridge, November 2002. (with Alex Izurieta) ‘Balances, Imbalances and Fiscal Targets. A New Cambridge View.’ working paper, Cambridge Endowment for Research in Finance, University of Cambridge, 2003. (with Marc Lavoie) ‘Two-Country Stock-Flow-Consistent Macroeconomics Using a Closed Model within a Dollar Exchange Regime.’ Centre for Financial Analysis and Policy Working paper n. 10, November 2003. (with Marc Lavoie) ‘Features of a Realistic Banking System within a Post-Keynesian Stock-Flow Consistent Model.’ Centre for Financial Analysis and Policy Working paper n. 12, 2004. (with Marc Lavoie) ‘Simple Open Economy Macro with Comprehensive Account- ing a Radical Alternative to the Mundell Fleming Model.’ Centre for Financial Analysis and Policy Working paper n. 15, April 2004. ‘Towards a Reconstruction of Macroeconomics Using a Stock Flow Consistent (SFC) Model.’ Centre for Financial Analysis and Policy Working paper n. 16, May 2004. (with Marc Lavoie) ‘Simple Open Economy Macro with Comprehensive Account- ing: A Two Country Model.’ Cambridge Endowment for Research in Finance Working paper n. 20, February 2005. ‘Prolegomena for a Sensible Macroeconomics.’ Paper prepared for the conference The Keynesian Legacy in Macroeconomic Modelling, Università degli Studi di Cassino, Italy, September 2005. http://ius.unicas.it/mc2005/papers/godley.pdf (with Marc Lavoie) ‘Prolegomena to Realistic Monetary Macroeconomics: A The- ory of Intelligible Sequences.’ Levy Institute Working paper n. 441, February 2006. Memoranda ‘Measurement, Forecasting and Control of Public Expenditure.’ Memorandum to Commons Expenditure Committee, 1970/71 (3rd Report), 1970. ‘Implied Price Relationships, Cmnd. 4234, Cmnd. 4578 and the National Income and Expenditure Account.’ memorandum to Commons Expenditure Committee, 1970/71, 1971. 264 Wynne Godley – A Bibliography

‘Measurement, Forecasting and Control of Public Expenditure.’ Memorandum to the Select Committee on Expenditure of the House of Commons (3rd Report), 1971. ‘Note on the Treasury Memorandum "Public Expenditure and Demand in Real Resources", 1971–1972’ (7th Report), 1971. (with B. Stafford) ‘Notes on Accounting Conventions with Particular Reference to the Treatment of Receipts.’ Submitted to Commons Expenditure Committee, 1970/71 (3rd Report), 1971 ‘Notes on "Public Expenditure to 1976–77" (Cmnd. 5178).’ Memorandum to Commons Expenditure Committee, 1972/73, 1972. ‘Public Expenditure and Demand on Real Resources.’ Memorandum to the Select Committee on Expenditure of the House of Commons (7th Report), 1972. ‘Public Expenditure and Economic Management.’ Memorandum to the Select Committee on Expenditure of the House of Commons (7th Report), 1972. ‘The Need for Further Information about Public Expenditure and What It Buys.’ Memorandum to Expenditure Committee, 1971/1972 (8th Report), 1972. ‘The Supply and Disposition of Real Resources.’ Note submitted to Commons Expenditure Committee, 1972/73 (11th Report), 1972. ‘The Measurement and Control of Public Expenditure.’ Memorandum to Expenditure Committee, November, 1973. ‘Public Expenditure and Inflation.’ Memorandum to Expenditure Committee, (9th Report), Session 1974, H.M.S.O., 1974. (with T.Francis Cripps; Martin J. Fetherston) ‘Public Expenditure and the Manage- ment of the Economy.’ Memorandum to Expenditure Committee, (9th Report), Session 1974, H.M.S.O., 1974. ‘Reflections on the Control of Local Government Expenditure and Its Finance.’ Evidence submitted to the Layfield Committee, January, 1975. ‘Reflections on the Control of Local Government Expenditure and Its Financing: Evidence Given to the Committee of Inquiry into Local Government Finance.’ Department of Applied Economics, University of Cambridge, 1975. (with Maurice FitzGerald Scott) ‘The Arguments for and Against Protectionism.’ Bank of England, Paper presented to the Panel of Academic Consultants, no. 10, 1980. ‘The Sensibility of Contemporary Institutions.’ Sermon before the University, Kings College Chapel, 31 May 1987. ‘Success in International Trade as the Key to Sustained Growth.’ London, TSB Group, 1993. ‘The Panel of Independent Forecasters February 1993 Report (Submission by W.Godley).’ London, HM Treasury, 1993. ‘The Panel of Independent Forecasters July 1993 Report (Submission by W.Godley).’ London, HM Treasury, 1993. ‘The Panel of Independent Forecasters October 1993 Report (Submission by W.Godley).’ London, HM Treasury, 1993. ‘The Panel of Independent Forecasters February 1994 Report (Submission by W.Godley).’ London, HM Treasury, 1994. ‘The Panel of Independent Forecasters May 1994 Report (Submission by W.Godley).’ London, HM Treasury, 1994. ‘The Panel of Independent Forecasters November 1994 Report (Submission by W.Godley).’ London, HM Treasury, 1994. Wynne Godley – A Bibliography 265

‘The Panel of Independent Forecasters May 1995 Report (Submission by W.Godley).’ London, HM Treasury, 1995.

Articles in Magazines and Newspapers, Letters to newspapers ‘The Barber “Package” under the Microscope.’ The Financial Times, 3 November 1970. (with Christopher Taylor) ‘Heavier Tax Burden and Reduced Consumption.’ The Times, 22 February 1971. (with Christopher Taylor) ‘Four Year Forecast of Public Spending.’ The Times, 8 December 1971. (with Francis Cripps) ‘Effects of the Cut in SET.’ The Times, 5 April 1971. (with Francis Cripps) ‘Can We Achieve a Balance in Our Resources.’ The Times, 9 December 1971. (with Francis Cripps) ‘Need for Unconventional Methods.’ The Times, 9 January 1973. (with Francis Cripps) ‘Why the Government’s Economic Strategy Is a Dangerous Gamble.’ The Times, 5 September 1973 (with Francis Cripps) ‘Drastic Steps to Restore Balance.’ The Times, 6 September 1973. ‘Revamping Rate Support.’ , 3 December 1973. (with Francis Cripps) ‘Why Britain Needs a Fresh Set of Principles to Manage the Economy.’ The Times, 22 January 1974. (with Francis Cripps) ‘Payments Deficit: The Strategic Options.’ The Times, 23 January 1974. (with Francis Cripps) ‘Budget Deficit and Balance of Payments.’ The Times, Letters to the Editor, 5 February 1974 ‘A Budget to Forestall Recession.’ The Times, Letters to the Editor, 19 March 1974. ‘Policy Choice.’ The Times, Letters to the Editor, 29 March 1974. ‘The Choices Facing Mr Healy.’ The Guardian, 22 July 1974. ‘The Real State of Our Economy.’ The Sunday Times, 6 October 1974. (with Adrian Wood) ‘Uses and Abuses of Stock Appreciation.’ The Times, 12 November 1974. (As part of the Cambridge Economic Policy Group’) ‘Case for Import Controls.’ The Guardian, 17 February 1975. ‘Fallacy at the Core?.’ The Guardian, 25 February 1975. (with Francis Cripps) ‘Profits, Stock Appreciation and the Sandilands Report.’ The Times, 1 October 1975. ‘The Case for Import Controls.’ The Sunday Times, 28 March 1976. ‘The Money Supply and Inflation.’ The Times, Letters to the Editor, 14 July 1976. ‘Programme for Economic Stability.’ The Times, Letters to the Editor, 27 September 1976. ‘What Britain Needs Is Growth – But It Must Be the Right Kind.’ The Times, 1 November 1976. ‘The Economic Crisis: The Effectiveness of Devaluation.’ The Times, Letters to the Editor, 6 November 1976. ‘Protection Only Way for Short-Term Cut in Jobless?.’ The Times, 10 November 1976. ‘Analysing the 1976 Devaluation.’ The Times, 16 November 1976. 266 Wynne Godley – A Bibliography

‘Public Spending Cuts.’ The Times, Letters to the Editor, 25 November 1976. (with Francis Cripps) ‘Why the Chancellor Should Be Thinking of a £2 Billion Cut In Taxes.’ The Times, 21 March 1977. ‘Money Supply and Inflation.’ The Times, Letters to the Editor, 18 April 1977. (with Alister McFarquhar) ‘EEC Membership and Food Prices.’ The Times, Letters to the Editor, 31 May 1977. (with Alister McFarquhar) ‘EEC and Agriculture.’ The Times, Letters to the Editor, 13 June 1977. (with Francis Cripps) ‘Towards a Fairer System of Local Authority Finance.’ The Times, 4 July 1977. ‘Large Scale Devaluation Is Not the Answer.’ The Times, 18 July 1977. ‘Size of Budget Deficit.’ The Times, Letters to the Editor, 10 July 1977. (with Richard Bacon) ‘Why the EEC Must Be Set on a Better Course.’ The Guardian, Letters to the Editor, 10 February 1978. (with Richard Bacon) ‘How to Count the Cost of British Membership of the EEC.’ The Guardian, Letters to the Editor, 16 February 1978. (with Francis Cripps) ‘Expanding Out of Rising Prices.’ The Guardian, 29 March 1979. ‘The CAP and the EEC budget.’ New Society, 26 April 1979. ‘PSBR and Money Supply Targets.’ The Banker, September 1979. ‘A Response to Wage Demands Built on False Assumptions.’ The Guardian, 2 October 1979. ‘Problems of the CAP.’ The Financial Times, Letters to the Editor, 1 November 1979. (with Richard Bacon) ‘Paying for the CAP.’ The Financial Times, 12 November 1979. ‘Wynne Godley Calls for General Import Controls.’ The London Review of Books, 24 January 1980. ‘Cost to Britain of Farm Proposals.’ The Times, Letters to the Editor, 21 February 1980. (with Francis Cripps) ‘Only a U-Turn Will Steer Britain Clear.’ The Guardian,24 March 1980. (with Francis Cripps) ‘The Economic Outlook from Cambridge.’ The Financial Times, Letters to the Editor, 14 April 1980. ‘If Britain Left the E.E.C..’ The Times, Letters to the Editor.’ 25 April 1980. ‘Testing Time for Monetarism.’ The Times, Letters to the Editor, 24 May 1980. ‘The Siege Has Begun.’ The Observer, 10 August 1980. ‘The Steep Drop at the End of the Tory Tunnel.’ The Guardian, 6 October 1980. ‘How Far Will the Government Let Unemployment Go?.’ The Times, 22 October 1980. ‘Causes of the Recession.’ The Financial Times, Letters to the Editor, 4 November 1980. ‘Seeking a Recipe for Recovery.’ The Times, Letters to the Editor, 11 November 1980. ‘The Causes of Recession.’ The Financial Times, Letters to the Editor, 12 November 1980. ‘Monetary Policies.’ The Times, Letters to the Editor, 19 November 1980. ‘The Causes of the Recession.’ The Financial Times, Letters to the Editor, 19 November 1980. ‘Time to Cut the Noose That Strangles Britain.’ The Guardian, 1 December 1980. Wynne Godley – A Bibliography 267

(with Robert Neild) ‘Monetarism’s Testing Time.’ The Times, Letters to the Editor, 9 January 1981. ‘Catastrophic Policies.’ The Financial Times, Letters to the Editor, 6 February 1981. ‘Need to Expand the Economy.’ The Times, Letters to the Editor, 19 February 1981. (with Francis Cripps) ‘Inflation: Can the Patient Survive?.’ The Times, 9 March 1981. (with Francis Cripps) ‘A Budget That Will Produce a Hyper-Slump Such As Britain Has Not Seen Before.’ The Guardian, 16 March 1981. ‘Controls on Imports.’ The Financial Times, Letters to the Editor, 11 May 1981. ‘Cambridge Case on Economy.’ The Telegraph, Letters to the Editor, 24 July 1981. ‘Economic Forecasting.’ The Times, Letters to the Editor, 4 August, 1981. ‘Depth of Recession Was Forecast.’ The Times, Letters to the Editor, 5 August 1981. ‘Economic Forecasting.’ The Financial Times, Letters to the Editor, 13 August 1981. ‘An Urgent Case for Reflation.’ The Times, Letters to the Editor, 18 December 1981. (with Francis Cripps and Terry Ward) ‘Mrs Thatcher on Course for over 4 million Unemployed.’ The Guardian, 26 April 1982. ‘Getting Desperate.’ The Observer, 30 May 1982. ‘Deficit That Can Starve.’ The Observer, 29 August 1982. ‘Shore’s Plan: Flawed But Feasible.’ The Times, 24 November 1982. ‘Mr Shore’s Strategy.’ The Times, Letters to the Editor, 8 December 1982. ‘Told You So.’ The Times, Letters to the Editor, January 1983. (with Francis Cripps) ‘No Oil to Pour on a Chancellor’s Troubled Waters.’ The Guardian, 14 March 1983. ‘Cambridge Keynesianism Fights Back.’ The Financial Times, April 1984. ‘No Real Signs of an Economic Up-Turn.’ The Times, Letters to the Editor, 20 July 1983. ‘The Myth of the Consumer Boom.’ The Observer, 21 August 1983. ‘False Formulae for Rate-Capping.’ The Times, Letters to the Editor, 13 January 1984. ‘Tory Economic Record.’ The Times, Letters to the Editor, 8 June 1985. ‘Expansion and Unemployment.’ The Financial Times, Letters to the Editor, 30 July 1985. ‘The Too Optimistic View of the Peers.’ The Observer, 27 October 1985. ‘A Doomed Economy.’ New Society, 17 January 1986. ‘Manufacturing Industry.’ The Financial Times, Letters to the Editor, 31 January 1986. (with Ken Coutts, Bob Rowthorn and Terry Ward) ‘The Downward Path.’ The Guardian, 10 March 1986.’ ‘Oh for Some Truly Radical Policies.’ The Observer, 2 November, 1986. ‘A Growth in the Heart of the Economy.’ The Observer, 7 August 1988. ‘Déjà vu Dogs the Consumer Boom.’ The Observer, 21 August 1988. ‘Why I Won’t Apologise.’ The Observer, 18 September 1988. ‘The Mirage of Lawson’s Supply-Side Miracle.’ The Observer, 2 April, 1989. ‘Exposed: Lawson’s Bogus Billions.’ The Observer, 9 April, 1989. ‘Why the Figures Tell Another Story.’ The Observer, 5 July, 1989. ‘Economic Disaster in Slow Motion.’ The Observer, 27 August, 1989. ‘Monetary Myths and Miracles.’ The Observer, 3 September, 1989. ‘On Track for a Major Recession.’ The Observer, 15 October, 1989. 268 Wynne Godley – A Bibliography

(with Ken J. Coutts and Gennaro Zezza) ‘Is Britain in Credit with the Rest of the World?.’ The Guardian, 26 January 1990. ‘Where Macroeconomics Went Wrong (A review of A Market Theory of Money by J.R. Hicks).’ Times Literary Supplement, 18–24 May 1990. ‘Recession Deep, Inflation High.’ The Observer, 19 August 1990. ‘Common Sense Route to a Common Europe.’ The Observer, 6 January 1991. ‘An Old Limousine.’ New Statesman and Society, 11 January 1991:18–21. ‘Out of the cul-de-sac.’ New Statesman and Society, 18 January 1991:18–20. ‘Not a Dirty Word.’ New Statesman and Society, 8 February 1991, 18–20. ‘Terminal Decay: There Is Virtually Nothing That the Chancellor Can Do to Avert the Slump.’ New Statesman and Society, 15 March 1991:11–14. ‘Giving Up.’ New Statesman and Society, 29 March 1991:16–17. ‘New Consensus - Same Old Recession.’ The Observer, 12 May 1991. ‘Bottoms Out?.’ New Statesman and Society, 17 May 1991: 22–23. ‘A Long View.’ New Statesman and Society, 28 June 1991: 18–19. (with Robert Rowthorn and Ken J. Coutts) ‘The Route Out of Recession.’ The Observer, 5 January 1992. ‘Escape from the Infinite Recession.’ New Statesman and Society, 20 March 1992: 30–31. ‘A Severe Hangover.’ New Statesman and Society, 10 April 1992: 26–27. (with Ken J. Coutts, Jonathan Michie and Robert Rowthorn) ‘Hands-Off Eco- nomics Equals Stagnation.’ The Observer, 19 April 1992. ‘No Cause for Optimism.’ New Statesman and Society, 17 July 1992: 18–19. ‘Maastricht and All That.’ London Review of Books, 14 (19), 8 October 1992: 3–4. ‘Letting Things Rip (review of T. Congdon, Reflections on Monetarism).’ London Review of Books, 15 (1), 7 January 1993, p. 9. ‘If in a Year’s Time a Chancellor.’ London Review of Books, 15 (7), 8 April 1993, p. 6. ‘Derailed.’ London Review of Books, 15 (16), 19 August 1993, p. 9. ‘Curried EMU: The Meal That Fails to Nourish.’ The Observer, 31 August 1997. ‘Why the World Could Still Catch Asian Flu.’ The Observer, 26 April 1998. ‘US Risks Stagnation If Net Lending Driving Growth Were to Fall.’ Financial Times, Letter to the Editor, 25 May 1998. ‘Motor Starts to Sputter. After Six Years of Rapid Growth, the US Economy Faces – At Best – A Period of Prolonged Stagnation.’ Financial Times, 10 July 1998. ‘Brake on US Growth.’ , Letters to the Editor, 20 July 1998. ‘Global Slowdown.’ New York Times, Letters to the Editor, 20 July 1998. ‘Don’t Let Gordon Off – He Is Not God.’ The Observer, 23 August 1998. ‘Policies Are Farcical.’ Financial Times, Letters to the Editor, 2 October 1998. (with Bill Martin) ‘Big Spenders Head for Crisis.’ The Independent, 29 December 1998. ‘Determining Balance between Receipts and Outlays.’ Financial Times, Letters to the Editor, 26 January 1999. ‘The US Economy: An Impossible Balancing Act. The US Economy Is Facing a Wall: Personal Savings Are Declining Unsustainably. When This Stops, As It Must, There Will Be a Recession.’ Financial Times, 19 February 1999. ‘Wrong about US Recessions.’ Financial Times, USA edition, Letters to the Editor, 1 March 1999. ‘Growth Fueled by Heavy Borrowing Hard to Sustain.’ USA Today, 17 March 1999. Wynne Godley – A Bibliography 269

(with L. Randall Wray) ‘Nation of Savers, or Just Spenders?.’ The New York Times, Letters to the Editor, 10 May 1999. ‘Funding May Be Flightier Than It Looks.’ Financial Times, Letters to the Editor, 17 December 1999. ‘U.S. Expansion May Be More Fragile Than Supposed.’ Financial Times, Letters to the Editor, 11 August 2000. (with L. Randall Wray) ‘Monetary Independence Vital to Political Independence.’ Financial Times, Letters to the Editor, 12 January 2000. ‘Growing Deficit Not Sustainable For Ever.’ Financial Times, Letters to the Editor, 19 September 2000. ‘Bush Should Triple His Tax Cuts. The US President Is Right to Relax Fiscal Policy But His Plans Are Not Aggressive Enough to Avoid Recession.’ Financial Times, 22 January 2001, p.15. ‘Saving Masud Khan.’ London Review of Books, 23(4), 22 February 2001:3–7. ‘Recession, USA.’ The Guardian, 23 October 2001. ‘US Fiscal Policy Is Not Neutral.’ Financial Times, Letters to the Editor, 18 December 2001. ‘Manufacturing Matters Very Much Indeed.’ Financial Times, Letters to the Editor, 18 January 2002. ‘Kick-Start Strategy Fails to Fire Spluttering US Economic Motor.’ The Guardian,21 January 2002. ‘Comparison of Household Debt Burdens.’ Financial Times, Letters to the Editor, 9 April 2002. ‘Complacency about Debt.’ Financial Times, Letters to the Editor, 2 May 2002. ‘One-Trick MPC Could Not Halt the Crisis.’ The Observer, 26 May 2002. ‘Why the World Cannot Rely on the US to Drive Growth.’ Financial Times, Letters to the Editor, 16 July 2002. ‘Huge Fiscal Expansion Shortened U.S. Recession.’ Financial Times, Letters to the Editor, 8 August 2002. (with Bill Martin) ‘America’s Years of Living Dangerously.’ The Observer,1 September 2002. ‘CAP Is a Destructive Monstrosity for Britain.’ Financial Times, 30 September 2002. ‘The New Interest–Rate Orthodoxy Is as Flawed as the Old One.’ The Guardian,11 November 2002. ‘Behind US’s Miraculous Performance.’ Financial Times, Letters to the Editor, 4 December 2002. ‘Dangerous Folly of Abiding by Brown’s Golden Rule.’ Financial Times, 3 January 2003. ‘Too Big a Trade Imbalance to Handle at Home.’ Financial Times FT.com site,27 January 2003. ‘Accounting for Acquisitions via Share Exchange.’ Financial Times, Letters to the Editor, 19 March 2003. ‘One-Club Golf Is for Losers.’ The Guardian, 19 May 2003. ‘The Awful Warning of the Lawson Boom.’ Financial Times FT.com site, 6 August 2003. ‘When the Trust That You Have in Your Bank Is Lost.’ Financial Times, 6 December 2003. ‘How RBS Gave Advice to My Niece.’ Financial Times, Letters to the Editor, 20 December 2003. 270 Wynne Godley – A Bibliography

‘Forecasting Is Defunct as a Means of Shaping Monetary Policy.’ The Guardian,11 October 2004. (with Alex Izurieta) ‘Deficits That Need a Global Answer.’ Financial Times,3 December 2004. (with L. Randall Wray) ‘Fed Can Handle Reserves to Keep US Rates on Target.’ Financial Times , 21 September 2005. ‘Pensions £150bn Black Hole May Not Be So Deep.’ Financial Times, Letters to the Editor, 11 January 2006. (with L. Randall Wray) ‘The Balance of Trade, Not Payments, Is True Measure of a Deficit’s Effects.’ Financial Times, Letters to the Editor, 15 February 2006. (with L. Randall Wray) ‘Obscure Argument Not Easy To Follow.’ Financial Times, Letters to the Editor, 17 February 2006. ‘US Economy and the Deficit Predicament.’ Financial Times, Letters to the editor, 30 May 2006. ‘New Balance of Payments Figures May Transform Strategic Outlook.’ Financial Times, Letters to the Editor, 28 December 2007. ‘Have Oxford Trio Built New Theory?.’ Financial Times, Letters to the Editor, 1 May 2008. ‘Tackle Inflation with a Sensible Incomes Policy.’ Financial Times, Letters to the Editor, 20 June 2008. (with Graham Gudgin, Bill Martin and Barry Moore) ‘Bank Downplayed the Downside Risk.’ Financial Times, Letters to the Editor, 20 November 2008. ‘Immediate Cuts to Budget Deficit Will Worsen Recession.’ Financial Times, Letters to the Editor, 9 October 2009. ‘An Expansionary Route to Cut Deficit.’ Financial Times, Letters to the Editor, 20 April 2010.

Sources 1. Godley’s own CV, written in 1992 (Levy Institute of Economics); 2. Search results from Google Scholar (using “Publish or Perish”) and Google; 3. University of Cambridge Library on-line catalogue; 4. Search results on the archives at Financial Times (www.ft.com), The Guardian (www.guardian.co.uk), The New Statesman (www. newstatesman.com), London Review of Books (ww.lrb.co.uk); 5. Search results from SCOPUS; 6. Lists previously compiled by Alex Izurieta and by Claudio Dos Santos; 7. A scrapbook of newspaper clips in the possession of Eve Taylor.

Note

We believe we have identified nearly all published papers and working papers. By contrast, we have most likely left out several of Wynne Godley’s many articles in newspapers. We are grateful for the help provided by Claudio Dos Santos, Alex Izurieta, and Eve Taylor (Wynne Godley’s daughter). Index

accounting capital accumulation, 129, 131–2, consistent, 23–31 140–50 inflation, 21–38 capital assets, 124 social, 125–8 capital equipment, 75 stock-flow, 123, 150 capital gains, on equities, 33–4 accounting consistency, 15 capital stock, 75 adjusted fiscal ratio (AFC), 220–1 cash holdings, 97 adjusted trade ration (ATR), 222–3 central banks, 167–9, 178–9, 189–93, Article 12 control, 240–1 203, 206 asset-demand functions, 136, 167–8, combined fiscal and trade ratio 171 (CFTR), 223–4 assets commercial banks, in RSFM, 51–3 capital, 124 commodity market, 65–6, 218 prices, 12–13 Congressional Budget Office (CBO) forecasts, 230–2, 237–8 balance of payments, 191–2, 212–13, consistent accounting, 2–3 221–5, 230–6 of nominal stocks and flows, 23–7 balance sheet, 94 in real terms, 28–31 banks’, 105, 108–9 consistent monetary economics, consistency, 24–5 160–1 balance sheet matrix, 7, 162 consumer spending, 32 bank deposits, 139, 143–4 consumption, 96–8, 124, 135, 137–8 bank loans, 51–3, 90–2, 98–100, 107, changes in propensity to consume, 113–14, 133–4 140–3 changes in interest rates on, 143–4 increases in, 147 bank money, 102 consumption demand, 67 banks consumption function, 8, 85–6, 135, balance sheets, 105, 108–9 165 behaviour of, 98–100, 133–4 corporate profits, 73–4 commercial, 51–3 corporations, 46–50 in Kaleckian growth model, 133–4 see also firms profits of, 98–100 cost-plus pricing, 4 role of, 24–5, 90–2 Cripps, Francis, 1–3, 5, 8, 13, 249 bond market, 65–73 currency depreciation, 240, 241–2 bond rate of interest, 114–16 current account deficit, 13 bonds, 5, 36–8 budget constraint, 123–4, 133 Davidson, Paul, 24 budget deficit, 194, 201, 203, 217 debt dynamics, 11–12, 201–2 budget surplus, 13, 185–6, 218, 231 debt identity, 13 debt-to-capital ratio, 130 Cambridge Economic Policy Group defensive asset ratio, 109–10 (CEPG), 8–9 demand-supply relationship, 41 capacity utilization, 130 disequilibrium hypothesis, 134–5

271 272 Index disposable income bond issuance by, 75 personal, 26–9, 33, 34, 164–5, 227 borrowing by, 132 public, 30–1 budget constraint of, 123–4, 133 real, 85 capital equipment, 75 distributed dividends, 132–3 cash flow of, 148 dividends, distributed, 132–3 changes in parameters controlled dollar devaluation, 240, 241–2 by, 147–50 decisions by, 129 economic policy, 9 expectations of, 96, 111–14 eurozone, 9, 159–87 investment by, 129–32 Economic Report of the President in Kaleckian growth model, 128–33 (ERO), 232, 234 profits of, 73–6, 95–6, 147 economic systems, inflation retention ratio of, 148–50 accounting of whole, 21–38 securities issues by, 148 Eichner, Alfred, 4 stock exchange value of, 152n11 endogenous money, 5, 81–9 fiscal policy, 4, 11, 13, 42 equilibrium eurozone, 159–87 general, 40 reaction function, 204–11 macroeconomic, 40 role of, 203–4 neoclassical, 41–2 RSFM and, 55–8 equities in SFC model, 194–214 capital gains on, 33–4 US, 216, 219–21 issuance of, 148 fixed coupon bonds, inflation and real price of, 136–7 capital losses on, 36–8 propensity to hold, 144–6 flexible exchange rates, 159–86 euro, 174, 184–5 flow identities, 25–7 European Central Bank (ECB), 9–11, flow of funds account, 161 159, 172–3, 178–9, 185 flow of funds matrix, 70–1, 92–4 European Community (EC), 189–93 flow variables, 22 European government, 11 foreign assets, 235 eurozone economic policy, 9–10, foreign direct investment, 235 159–87 foreign sector, 211–13 exchange, theory of, 90–1 foreign trade, 221–4 exchange rates free trade, 9 flexible, 9–10, 159–86 Friedman, Milton, 204 management of, 13 full employment, 11, 13, 67, 194, 202, exogenous growth rates, 129 210–11, 213–14 exogenous interest rates, 168–73 fundamental accounting identity, 8–9 exogenous money, 90 expectations, 90, 91, 96 General Agreement on Tariffs and household, 135–7 Trade (GATT), 240 random, 111–14 general equilibrium, 40 exports, 165–7, 211–13, 240 global financial crisis, 11 external shocks, 173–8 government behaviour of, 100–2 federalism, 193 budget constraint, 100–1 Federal Reserve, 172–3 government debt, 107, 108, 113, 114, firms 116, 211 behaviour of, 94–6, 128–33 constraints on, 179 Index 273 government debt – continued personal disposable, 26–9, 33, 34, interest on, 29, 32 164–5, 227 real, 35–6 public disposable, 30–1 targets for, 194 real, 28–9 government expenditure, 32, 108–11, real disposable, 85 200–1, 205–6, 208–10, 218 real net, 66 Graziani, Augusto, 5, 6, 81–9 sectoral, 26–7 Greek crisis, 10 income shocks, 112 gross domestic product (GDP), 194, inflation, 42 200–1, 203, 220–1, 224, 239 on fixed coupon bonds, 36–8 addition to, 108–9 national income and, 54–5 debt relative to, 12, 13, 14, 176–8, on perpetuities, 36–8 183–5 rate of, 204–11, 213–14 steady-state flow of, 102–3 in RSFM, 53–5 growth, real rate of, 201–2 inflation accounting, 3 growth models of whole economic systems, 21–38 classical, 140 inflation neutrality, conditions for, heterodox, 131 31–6 Kaleckian, 7–8, 123–56 inflation tax, 191 Marxian, 140 interest payments, 69, 71, 72, 74, 130–1 Haig-Simons measure of income, 3, interest rates, 69, 106, 110, 113, 194 165 bond rate of, 114–16 Hicks, John, 3, 23, 41, 43, 88, 90, 117 changes in, 143–4 historical time, 90–1 exogenous, 168–73 household debt, 13–14, 224–8 household portfolio responses to, household income, 66–9, 72–3, 77, 115 134, 137–8 inflation and, 54–5 households money rate of, 116 allocation of interest bearing assets money supply and, 73 of, 111 nominal, 23, 29, 31–2, 202 behaviour of, 96–8, 134–7 real, 29, 33, 34, 201–2, 203 consumption by, 124, 135, 137–8, inventories, 25–7 224–8 levels of, 103–8 expectations, 135–7 response of, to sales shocks, 112 in Kaleckian growth model, 134–7 investment demand, 67 in RSFM, 50–1 investment finance constraint, 71 wealth of, 123–4, 152n19 investment functions, 129–32, 139, household savings, 133–5, 224–8 148–9 housing prices, 35 IS-LM model, 90, 121n3 Italian circuit school, 5 imports, 18, 165–7, 211–13, 240–1 income Kaldor, Nicholas, 5, 8, 40, 43, 87, 90, definition of, 23, 134 123–4, 138–9 Haig-Simons measure of, 3, 165 Kaleckian growth models, 7–8, household, 66–9, 72–3, 77, 134, 123–56 137–8 banks in, 133–4 national, 26, 30–2, 54–5, 88, 161 behavioural relationships, 128–39 personal, 161 changes in interest rates and, 143–4 274 Index

Kaleckian growth models – continued money supply, 42, 65–7, 72–3, 77, 86, changes in parameters controlled by 90, 91, 138 firms and, 147–50 Moore, Basil, 87, 131 changes in propensity to consume mortgage debt, 35 and, 140–3 national balance sheets, 24–5 changes in propensity to hold national income, 26, 32, 161 equities and, 144–6 inflation and, 54–5 changes in real wages and, 146–7 real, 30–1, 88 experiments, 139–50 national income accounts, 22 firms in, 128–33 national income and product households in, 134–7 accounts (NIPA), 161 social accounting and, 125–8 negative external shocks, 173–8 system-wide implications, 137–9 neo-charalists, 11 Keynesian economics, 40, 81–9, 90 neoclassical equilibrium, 41–2 labour demand, 55 neoclassical marcoeconomic model labour market, 40, 65–6, 218 bond market and, 69–73 leverage ratio, 130 government in, 101–2 loans, 51–3, 90–2, 98–100, 107, inconsistency in, 65–80 113–14, 133–4 numerical simulation of, 77–9 standard, 68–9 Maastricht treaty, 10–11, 185, 189–93 neoclassical paradigm (NCP), 39–40, MacDougall Report, 192 42 macroeconomic equilibrium, 40 neoclassical production function, macroeconomic models, 5 40–1 inconsistency in neoclassical, 65–80 neoclassical theory, 4–5, 150 macroeconomic theory, 6, 22 neoclasssical synthesis (NCS), 90–1 neoclassical, 39–42 neo-Pasinetti model, 123–4, 135, 139 managed trade, 9 net export demand, 221–2 market price, 41 net foreign indebtedness, of US, 13 mark-up, 4, 128–9, 146–7 net lending, 12 Minsky, Hyman, 130–1 New Cambridge approach, 13, 242 monetary economy, 124, 138–9 nominal interest rates, 23, 29, 31–2, monetary policy, 11, 194, 203–4, 217 202 monetary theory of production, 5 nominal stocks and flows, consistent money accounting of, 23–7 bank, 102 nominal wages, 88–9 demand for, 88, 107, 138, 168 normal regime, 139, 140, 143–6 endogenous, 5, 81–9 open economies, 9 exogenous, 90 holdings, 124 Pasinetti, Luigi, 40, 43, 211 quantity theory of, 65 Patinkin, Don, 67, 73–6 real demand for, 73 perpetuities, inflation and real capital real stock of, 229 losses on, 36–8 response of, to income shocks, 112 personal disposable income, 26–9, money creation/destruction, 13 33–4, 164–5, 227 money deposits, 137 personal income, 161 money market, 65–6, 72 Phillips curve analysis, 204–5 money rate of interest, 116 post-Keynesianism, 11, 131, 150 Index 275 prices real stock of money (M3), 229 of equities, 136–7 real wages, 88–9, 146–7 of goods, 40, 41 retained earnings, 132–3 market, 41 retention ratio, 148–50 mark-up and, 128–9 Robinson, Joan, 5, 117, 139 price stability, 11 RSFM, see real stock-flow monetary private expenditure function, 242–7, model (RSFM) 251 sales shocks, 112 private savings, 12 savings private sector household, 133–5, 224–8 indebtedness of, 13 paradox of, 140, 141–3 net financial assets, 13 sectoral income, 26–7 net lending to, 12 social accounting matrices (SAM), 123, production, monetary theory of, 5 125–8 production function, neoclassical, sovereignty, 10–11, 190, 191 40–1, 81 steady-state growth, 133 profits, 26, 95–6 stock appreciation, 26 bank, 98–100 stockbuilding, 42 distribution of, 73–6 stock exchange value, 152n11 wages and, 147 stock-flow accounting, 123, 150 propensity to consume, 140–3 stock-flow coherent method, 1–2, 5–7 protectionism, 240–1 stock-flow-consistent (SFC) model public debt, see government debt accounting framework, 92–4 puzzling regime, 139, 141–6 analytical results, 200–1 quantity theory of money, 65 applied to three economies with two currencies, 159–87 random expectations, 111–14 arithmetical results, 199–200 reaction function, 204–11 behavioural assumptions, 94–102 real capital losses development of, 14 on fixed coupon bonds, 36–8 fiscal policy in, 11, 194–214 on perpetuities, 36–8 with foreign sector, 211–13 real disposable income, 85 interest in, 14–15 real income, 3, 28–9 Kaleckian growth models in, 123–56 real interest rates, 29, 33, 34, 203 long-run properties, 102 real money stock, 12 outline of, 195–9 real national income, 30–1, 88 parameters of, 118–20 real net income, 66 research on, 15–16 real public disposable income, 30–1 simulations, 102–16 real stock-flow monetary model variables of, 118 (RSFM), 4, 43–60 stock-flow consistent accounting, 2–3 basic accountancy of, 43–6 stock-flow ratios, 14, 15 commercial banks in, 51–3 stock variables, 22 corporations in, 46–50 Stone, Richard, 123 features of, 58 subprime financial crisis, 12 fiscal policy and, 55–8 Sylos Labini, Paolo, 3, 39–41 full steady-state of, 55–8 household sector in, 50–1 tariffs, 241 inflation in, 53–5 taxation, 190–1, 218 276 Index

Taylor, Lance, 161 foreign trade and payments, 221–4 theory of the firm, 68 gross domestic product (GDP), theory of the household, 68 220–1, 224 three-country model, 159–87 policy considerations for, 240–2 equations and experiments, 178–83 private saving, spending and exogenous interest rates, 168–73 borrowing, 224–8 fiscal policies, 168–73 private sector behaviour scenarios, negative external shocks and, 173–8 236–40 overview of, 161–8 strategic prospects, 229–40 time, 42, 90–1 unsustainable processes in, 12–13, Tobin, James, 8, 14, 43, 56, 82, 90, 97, 213–14 102, 117, 123 US housing boom, 12, 13–14 total financial wealth, 24–5 trade valuation ratio, 123–4, 131, 139 free, 9 wages, 40, 55, 88–9, 146–7, 148 managed, 9 Walrasian model, 91–2 trade balance, 212–13, 221–4 Walras’s law, 5, 66, 67, 69–72 transactions-flow matrix, 7, 82–4, 126, wealth, 3, 124 161, 163 allocation of household, 113 two-country models, 160–1 bonds and money as shares of, 107 unemployment, 40, 217, 218, 236 components of, 104, 110 United States of households, 123–4 adjusted fiscal ratio (AFC), 220–1 wealth accumulation, 96–7, 165 balance of payments, 232–6 whole economic systems, inflation budget deficit, 217 accounting of, 21–38 economy of, 216–18 Wood, Adrian, 4, 43, 48, 50, 133 eurozone and, 159–87 world economy, 161, 238–40 fiscal policy, 216, 219–21 World Trade Organization (WTO), 240 foreign indebtedness, 232–6 Wray, L. Randall, 87