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...

It is shown that asset-based financial systems, just like overdraft financial systems, rely on a fully endogenous supply of high-powered money, with central banks engaging essentially in "defensive" operations. This is demonstrated through an analysis of the Canadian monetary process, which is...

In a review of John King's book, Paul Davidson has argued that King had been in error when including Sraffians and Kaleckians in his Post Keynesian classification. Davidson seems to believe that Post Keynesianism should be restricted to Fundamental Keynesianism. It is shown that King followed...