Description
Global Imbalances and Financial Capitalism
Stock-Flow-Consistent Modelling
Routledge Frontiers of Political Economy Series
Language: English
Keywords
Stock Flow Consistent Modelling; Estimate Equilibrium Exchange Rates; financial stability; Chinese Exchange Rate Policy; financial accumulation; Gdp Growth; critical finance; Endogenous Interest Rates; economic policy; Real Effective Terms; monetary policy; Exchange Rate Misalignments; Euro crisis; Equilibrium Current Account; FEER; Equilibrium Exchange Rate; SFC; Euro Area; global imbalances; international finance; ECB; Exchange Rate Regimes; Exchange Rate Adjustments; National Euro; Exchange Rate; Chinese Central Bank; GDP Price; Clearing Union; Euro Zone; Intra-European Exchange Rate; Balance Sheet Identity; Treasury Bills; Dollar Peg
Publication date: 12-2021
· 15.6x23.4 cm · Paperback
Publication date: 05-2020
· 15.6x23.4 cm · Hardback
Description
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The past few decades have witnessed the emergence of economic imbalances at the world level and within the euro zone. The failure of mainstream economics to accurately predict financial crises, or model the effects of finance-led growth, highlights the need for alternative frameworks.
A key text, Global Imbalances and Financial Capitalism: Stock-Flow-Consistent Modelling demonstrates that Stock-Flow-Consistent models are well adapted to study this growth regime due to their ability to analyse the real and financial sides of the economy in an integrated way. This approach is combined with an analysis of exchange rate misalignments using the Fundamental Equilibrium Exchange Rate (FEER) methodology, which serves to give a synthetic view of international imbalances. Together, these models describe how global and regional imbalances are created, as well as suggest appropriate tools through which they may be reduced. The book also considers alternative economic policies in the euro zone (international risk sharing, fiscal federalism, eurobonds, European investments, a multispeed euro zone) alongside alternative monetary policies. In particular, it examines the possibilities of using SDR (Special Drawing Rights) as a reserve asset to be issued to fight a global recession, to support the development of low-income countries, or as an anchor to improve global monetary stability.
This text will be of interest to students, scholars, and researchers of economic theory and international monetary economics. It will also appeal to professional organisations who supervise international relations.
Jacques Mazier is Professor Emeritus at the University Sorbonne Paris Nord, CEPN-CNRS, France.
