Expectations are usually introduced in macroeconomic stock-flow consistent models (SFC-models from hereon) in an ad hoc way, without much motivation. Moreover, these are usually very simple forms of expectations, and certainly not some form of rational expectations. The implicit assumption is...

The 2008 collapse of the world financial system, while proximately linked to the housing bubble and risk laden mortgage backed securities, was a consequence of the financialization of the U.S. economy since the 1970s. This paper examines the institutional and income dynamics associated with...