GODLEY, WYNNE; LAVOIE, MARC - In: Journal of Post Keynesian Economics 28 (2006) 2, pp. 241-276
This paper presents a stock-flow model of two economies (together comprising the whole world) that trade goods and financial assets with one another. The first part of the paper describes a single economy on a fixed exchange rate, with no private capital flows, in order to obtain simple analytic...