Accounting for Financialization: Stock-Flow-Consistent Political Economy. (1st July 2015)

• Record Type: Journal Article
• Is Part Of: World review of political economy. Volume 6:Number 2(2015)
• Page Start: 192
• Page End: 207
• Publication Date: 2015-07-01
• Subjects: accounting -- financialization -- stock-flow norms; Economics -- Political aspects -- Periodicals; Economic development -- Periodicals; Economic policy -- Periodicals; Economic development; Economic policy; Economics -- Political aspects; Periodicals; 330.05
• DOI: 10.13169/worlrevipoliecon.6.2.0192
• Languages: English
• ISSNs: 2042-8928

Abstract

Abstract : We adopt the Post Keynesian input-output framework pioneered by Wynne Godley to delve into both the causes and consequences of financialization. The distinction between National Income accounting and stock-flow-consistent modelling is showcased. Also, the political economy foundations of financial economics are unearthed. Constructively, the elements of a planned strategy to reinvent the accumulation of capital are sketched. Also, we show how ""asset-based reserve requirements"" and the issue of government bills and bonds can be ""creatively manipulated"" by the state to deliver superior and stable social outcomes.