Trends in Assets and Liabilities of Commercial Banks in the USA

Trends in Assets and Liabilities of Commercial Banks in the USA

To big to fail means too interconnected to fail.
As the balance sheets of banks have expanded so has their number of counterparties on both sides of balance sheets.

The US commercial banks have have expanded their balance sheets.

On assets side, the loans portfolio has expanded.

Low Interest Rates and Banks’ Profitability – Update October 2020

On liabilities side, the deposits and borrowings have increased.

US Federal Reserve publishes H8 report on Assets and Liabilities of the US commercial banks. Detailed information on aggregate data presented in this post can be obtained from it.

https://www.federalreserve.gov/releases/h8/h8notes.htm

On liabilities side, the borrowings from wholesale money markets and shadow banking contributed to systemic risk during 2008 financial crisis. Please see my posts on this subject.

Funding Strategies of Banks

Shadow Banking

There were also capital flows in US markets from foreign banks and other markets.

Low Interest Rates and International Capital Flows

On liabilities side, because of increased borrowings from short term markets, the financial interconnections have also increased resulting in systemic risk and financial contagion.

On assets side, because of increased volumes of loan portfolios, the systemic risk and chances for financial contagion have increased.

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Contagion in Financial (Balance sheets) Networks

For analytical framework, accounting approach (Post Keynesian Economics) is one of the option.

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Foundations of Balance Sheet Economics

Economics of Money, Credit and Debt

Morris Copeland and Flow of Funds accounts

Stock-Flow Consistent Modeling

Key Terms

  • Money View
  • Money Flows
  • Stocks and Flows
  • System Dynamics
  • Business Dynamics
  • Business Strategy
  • Asset Liability Management ALM
  • Balance Sheet Economics
  • Monetary Policy
  • Interest Rates
  • Credit
  • Debt
  • Money
  • Balance Sheet Expansion
  • Systemic Risk
  • Interconnectivity
  • Loan Portfolio
  • To big to fail
  • Networks
  • Funding Strategy
  • Market Liquidity
  • Funding Liquidity
  • Deposits
  • Interest Income
  • Non Interest Income
  • Borrowings
  • Wholesale Money Markets
  • Shadow Banking
  • International Capital Flows
  • Round Tripping
  • Global Liquidity
  • Eurodollar Market
  • Money Market Mutual Funds
  • Quadruple Accounting
  • Morris Copeland
  • Hyman Minsky
  • Wynn Godley
  • Perry Mehrling

Image Source: Liberty Street Economics 2017

AVERAGE NET INTEREST MARGIN OF BANKS IN THE UNITED STATES FROM 1995 TO 2019
Image Source: Statista

NET INTEREST MARGIN FOR ALL U.S. BANKS (USNIM)
Image Source: FRED

Total Assets, All Commercial Banks (TLAACBW027SBOG)
Image Source: FRED

Total Liabilities, All Commercial Banks (TLBACBW027NBOG)
Image Source: FRED

DEPOSITS, ALL COMMERCIAL BANKS (DPSACBW027SBOG)
Image Source: FRED

My Related Posts

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Foundations of Balance Sheet Economics

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Funding Strategies of Banks

Economics of Money, Credit and Debt

Low Interest Rates and International Capital Flows

Low Interest Rates and Banks’ Profitability – Update October 2020

Morris Copeland and Flow of Funds accounts

Key Sources of Research

Deposits, All Commercial Banks (DPSACBW027SBOG)

https://fred.stlouisfed.org/series/DPSACBW027SBOG

Total Liabilities, All Commercial Banks (TLBACBW027NBOG)

https://fred.stlouisfed.org/series/TLBACBW027NBOG

TOTAL ASSETS, ALL COMMERCIAL BANKS (TLAACBW027SBOG)

https://fred.stlouisfed.org/series/TLAACBW027SBOG

Between deluge and drought:
The future of US bank liquidity and funding

Rebalancing the balance sheet during turbulent times

McKinsey

2013

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/Risk/Working%20papers/48_Future%20of%20US%20funding.ashx

Assets and Liabilities of Commercial Banks in the United States – H.8

https://www.federalreserve.gov/releases/h8/h8notes.htm

The geography of dollar funding of non-US banks1

Network Economics of Block Chain and Distributed Ledger Technology

Network Economics of Block Chain and Distributed Ledger Technology

 

Quadruple Accounting System

Morris Copeland, and Hyman Minsky emphasized quadruple entry accounting system envisioning interrelated interlocking balance sheets of economic agents.  Interlocking balance sheets create a network of economic agents.

I attach a slide from a presentation by Marc Lavoie given at Minsky Summer school in 2010 at the Levy Institute of Economics (Bard College).

 

Minsky

 

There are several FINTECH innovations which are bringing about dramatic changes in the financial services business.

  • Block Chain and Distributed Ledgers
  • Payment Banks
  • Retail P2P Payment services
  • Mobile Payments
  • Secured Wallets
  • Domestic Real Time Payments and Transfers
  • Cross Border Near Real time Money Transfers

 

Block Chain and Distributed Ledgers, in my opinion, are/can be implementation of quadruple accounting principles envisioned by Morris Copeland and Hyman Minsky.  Two economic agents engage in financial transactions which are recorded in distributed ledgers.

Some of the key components of distributed ledger technology are:

  • Peer-To-Peer Networking
  • Cryptography
  • Distributed Data Storage

In contrast with centralized ledgers, distributed ledgers store data at each node in the P2P network.  So there is no need for an intermediating institution.  From a payment system perspective, each node in the P2P network can be thought of as a bank.   Each node will have its own ledger and balance sheet which will record assets and liabilities.

Ripple is a Cross Border money transfer solution which is based on block chain technology.

 

Recent rise of retail P2P payment services such as

  • Xoom
  • M-Paisa
  • PayTM

indicates a trend toward real time payments/money transfers domestic and international.  This trend also indicates decoupling of these services from traditional deposit/lending banks. XOOM is a service provided by PAYPAL for international Money Transfers.  Money transfers are within a few minutes.

In USA, there are new P2P services offered to facilitate faster near real time payments/money transfers through mobile and online interfaces.

  • Venmo (Paypal)
  • Zelle (clearXchange Network)
  • Square Cash
  • Braintree (Paypal)

There are also social media payments available now through which consumers can quickly send money using social media applications such as

  • Facebook (through Messanger app)
  • Snapcash (through SnapChat)
  • Apple PayCash (through imessages app)
  • TenCent via WeChat

 

Rise of payment banks such as PayTM is one such example.  Reserve Bank of India has granted PayTM a payment bank status.  But transfers are still between bank accounts of transacting consumers where deposits are kept. Payment Bank acts as a technology provider and acts as an intermediary.

As per the RBI guidelines, payments banks cannot lend they can only take deposits or accept payments.

There are four payment banks in India now.

  • PayTM Payment Bank
  • Airtel Payment Bank
  • India Post Payment Bank
  • FINO Payment Bank

 

Mobile payments using secured wallets is another such example.

  • Consumer to Business payments and transfers
  • Consumer to Consumer payments and transfers
  • Google Wallet
  • Apple Pay
  • Android Pay
  • Alipay

 

Cross Border Payment Solutions:

  • XOOM
  • Earthport
  • TransferWise
  • RIPPLE
  • Remitly
  • WorldRemit

 

 

Please see my other related posts:

Next Generation of B2C Retail Payment Systems

Cross Border/Offshore Payment and Settlement Systems

 

 

Key sources of Research:

 

Minsky and Godley and financial Keynesianism

Marc Lavoie
University of Ottawa

2010

Click to access Lavoie.pdf

 

Block Chain:  A Primer

2016

Click to access MPRA_paper_76562.pdf

 

Distributed Ledger Technologies/Blockchain: Challenges, opportunities and the prospects for standards

Advait Deshpande, Katherine Stewart, Louise Lepetit, Salil Gunashekar

2017

www2.caict.ac.cn/zscp/qqzkgz/qqzkgz_zdzsq/201708/P020170818579005375876.pdf

 

Banking on Distributed Ledger Technology: Can It Help Banks Address Financial Inclusion?

By Jesse Leigh Maniff and W. Blake Marsh

2017

Click to access 3q17maniffmarsh.pdf

 

 

Distributed ledger technology in payments, clearing, and settlement

Mills, David, Kathy Wang, Brendan Malone, Anjana Ravi, Jeff Marquardt, Clinton
Chen, Anton Badev, Timothy Brezinski, Linda Fahy, Kimberley Liao, Vanessa Kargenian,
Max Ellithorpe, Wendy Ng, and Maria Baird (2016).

Finance and Economics Discussion
Series 2016-095. Washington: Board of Governors of the Federal Reserve System,

2016

Click to access 2016095pap.pdf

 

 

Distributed Ledger Technology: beyond block chain

A report by the UK Government Chief Scientific Adviser

Click to access gs-16-1-distributed-ledger-technology.pdf

 

Bitcoin, Blockchain & distributed ledgers: Caught between promise and reality

Deloitte

Click to access au-deloitte-technology-bitcoin-blockchain-distributed-ledgers-180416.pdf

 

 

Distributed ledger technology in payment, clearing and settlement
An analytical framework

BIS

2017

Click to access d157.pdf

 

 

The Truth About Blockchain

HBR
January–February 2017 Issue

 

https://hbr.org/2017/01/the-truth-about-blockchain

 

THE USE OF BLOCKCHAIN IN CLEARING AND SETTLEMENT

MARECHAL Baptiste

 

 

Peer-to-peer payments: Surveying a rapidly changing landscape

By Jennifer Windh

August 15, 2011

 

Click to access 110815wp.pdf

Morris Copeland and Flow of Funds accounts

Social Accounting Ideas

  • NIPA – Simon Kuznets, Wesley Mitchell, Richard Stone, James Meade
  • Flow of Funds Accounts – Morris Copeland
  • Input Output Tables – Wassily Leontief
  • Social Accounting Matrix – Richard Stone, Graham  Pyatt, Erik Thorbecke

 

Morris Copeland and Financial Accounts

 

From THE ORIGINS OF FINANCIAL ACCOUNTS IN THE UNITED STATES AND ITALY: COPELAND, BAFFI, AND THE INSTITUTIONS 

In 1944, Copeland was commissioned by the National Bureau of Economic Research (NBER) to create a statistical framework for the money circuit. The project was carried out in collaboration with the Federal Reserve, in particular the Board’s Division of Research and Statistics. After the First World War, Wesley Mitchell had built annual estimates of national income while working at the NBER.2 Copeland started from an unpublished memo that Mitchell had written in 1944, in which the economy was divided into four groups of units. Each group makes payments to and receives payments from the others. In double-entry accounts, the payments made by each group are recorded on one side and the payments received on the other. All payments appear among the liabilities of one group and the assets of another.

Copeland’s work was first published in 1947, in an article in the American Economic Review. His principal work, published in 1952, analysed the moneyflows of U.S. institutional sectors from 1936 to 1942.3 The initial project envisaged two sectors – households, and an aggregate of the other sectors – and six types of moneyflows. The analysis was later extended to eleven sectors: households; farms; industrial corporations; business proprietors and partnerships; the federal government; state and local governments; banks and US monetary funds; life insurance companies; other insurance carriers; other financial intermediaries not included in the above categories; and the rest of the world.

Copeland identifies four origins of moneyflows, or motivations: households’ distributive shares, households’ product transactions, secondary distribution (i.e. transfer payments), and flows through financial channels. There are fourteen types of moneyflows, all of which can be traced to one of these four motivations. Four moneyflows can be attributed to households’ distributive shares: wages and salaries, cash dividends, cash interest, and net owner take-outs. A further four are the result of production transactions: customers’ payments to firms for goods and services; rents; instalments to contractors; payments for real-estate sales. Five moneyflows – insurance premiums, insurance benefits, taxes collected, tax refunds, and public purpose expenditures – fall into the category of transfer payments. The fourteenth moneyflow consists in financial transactions and constitutes the fourth motivation.

The statistics built by Copeland provide information on the distribution of moneyflows between production transactions, transfer payment transactions, and transactions through financial channels. Every sector has its own balance sheet, with its own assets and liabilities. A distinction is maintained throughout between aggregates measured on a cash basis and those on an accrual basis, although Copeland himself prefers the first method. Moneyflows are presented as an extension of the national accounts, on which Copeland had written extensively since the end of the 1920s; moneyflows are constantly compared with the concept of national income, underlining analogies and differences. Copeland states that both his approach and the national income one are based on the notion of the economy as a circuit. The moneyflows approach makes it possible to analyse debit and credit movements that are not part of the concepts of production and income distribution.

 

Copeland describes his work as an extension of ‘social accounting to moneyflows measurement’,4 highlighting the advantages of his approach over the equation of exchange. In particular, the disaggregate approach produces ‘money inflows’ and ‘money outflows’ for each sector. Despite the different definition given to the institutional sectors, Copeland maintains that Leontief’s work is similar to his own.5 Moneyflows go from one sector of the economy to another, with liabilities financing assets. Leontief talks of inputs producing outputs. There is a visual similarity between the two approaches, as the phenomena are measured by constructing large double-entry matrices.

In addition to moneyflows, Copeland also considers stocks, which are measured by loanfunds, that is financial assets and liabilities of institutional sectors. He cites Irving Fisher’s The Nature of Capital and Income of 1906, which draws a distinction between stocks and flows. Copeland stresses the importance of using financial statements in economics, following an approach already adopted by Robertson, Mitchell, Hawtrey, Lutz, Hicks and others.6 He recalls the difficulty of communication between accounting and statistics, principally because of the different conventions they employ.

Copeland makes a sharp distinction between consolidated statements, in which positions between sectors are net of reciprocal transactions, and combined statements, which include all transactions between sectors. He examines issues on which economists and statisticians are still working, such as the differences between real accounts and financial accounts, and, in the case of business proprietors, the distinction between assets belonging to the business and assets of the proprietor’s family. He points to the difficulties of ‘balancing’ the total assets and liabilities of the economy caused by three differences: in the timing of entry of transactions; in their classification of identical items; and in the evaluation criteria applied to assets and liabilities.

 

As mentioned earlier, Copeland’s work ties in with various lines of analysis, which are themselves linked to one another. The first connection is with the developments in national accounts that followed Keynes’s General Theory. As Federico Caffè recalled, Keynes invented not only a discipline, but also the words to describe it, setting the national accounts on a new basis. The process was not an easy one. Blanchard described macroeconomics before the Second World War as ‘an age of confusion’. After Keynes, progress in national accounts can be attributed mainly to Kuznets, Stone, and Hicks (the first edition of The Social Framework is dated 1942); a major effort of organisation produced the United Nations’ System of National Accounts (SNA) of 1947. Copeland had already studied the national accounts before the Second World War, publishing papers in the NBER series Studies in Income and Wealth. His essays of 1935 (‘National Wealth and Income – An Interpretation’) and 1937 (‘Concepts of National Income’) were cited by Richard Stone in the preparatory work for the SNA. Afterwards, when the concepts of real national accounts had been codified, it was a natural step to move on to the notion of financial accounts.

Another inspiration for moneyflows was the debate on the business cycle, in particular Mitchell’s efforts to collect relevant statistics. Mitchell and Copeland were very close and the moneyflows project was the last Mitchell undertook before retiring. Moneyflows are part of the American tradition of institutionalism – stretching from Veblen to Commons and from Ayres to Mitchell himself – which stresses the importance of an empirical approach to the interpretation of economic phenomena and the need to build statistics based on time series.10 It is not an obvious approach: Koopmans’s cutting verdict, ‘measurement without theory’, appeared in 1947 in a review of Burns and Mitchell’s book on the measurement of economic cycles.11

Copeland’s approach was also predominantly empirical. He reproaches Keynes that the latter’s theoretical approach was one of the reasons the General Theory had been assimilated in the Neoclassical Synthesis.12 Copeland had already attacked the abstraction of the neoclassical approach in 1931, causing Frank Knight to express several reservations.13 However, it would be wrong to classify Copeland’s contribution as empirical only, and to level against him the same accusation that Koopmans made against the Burns-Mitchell duo. Copeland has in mind not only the work of Keynes, but also that of Hicks, notably Value and Capital, which was first published in 1939, and in particular Chapter 14 on the difficulties of defining and measuring an economy’s income, and Chapter 19 on the demand for money. He asserts that a similarity exists between his ideas and those put forward in Value and Capital, underlining that Hicks focuses only on households and firms. Basically, Copeland has a vision of an economic system with a wealth of specialised and interconnected activities that is co-ordinated by institutions of the law: property rights, regulations governing contracts and negotiable instruments, rules on compensation and bankruptcy, and freedom of association. Money and other ‘pecuniary institutions’ are further elements that allow an economy to function.14 After the essays on moneyflows he remained interested in money, particularly the origin of monetary economies and the development of bank money. His interest in all the institutional sectors of the economy led him to study the US general government debt, with strong emphasis on relations between the federal government, on one side, and state and local bodies, on the other.15

 

Key Sources of Research:

 

FLOW-OF-FUNDS ANALYSIS AT THE ECB

FRAMEWORK AND APPLICATIONS

by Louis Bê Duc and Gwenaël Le Breton

 

2009

Click to access ecbocp105.pdf

 

Balance Sheets, Transaction Matrices and the Monetary Circuit

Lavoie and Godley 2007

Book of Monetary Economics chapter 2

 

Click to access Godley%20Lavoie%202007%20chap02-1.pdf

 

The Flow-of Funds Approach to Social Accounting: Appraisals, Analysis, and Applications

Conference on Research in Income and Wealth

Published in 1962 by Princeton University Press

http://papers.nber.org/books/unkn62-1

 

Copeland on money as electricity

Anne Mayhew

2010

 

Click to access Mayhew53.pdf

 

A Study of Moneyflows in the United States

Morris A. Copeland

1952

http://econpapers.repec.org/bookchap/nbrnberbk/cope52-1.htm

 

Credit Aggregates from the Flow of Funds Accounts

Milton P. Reid, III and Stacey L. Schreft

 

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.203.2516&rep=rep1&type=pdf

 

Financial Accounts of the United States

Flow of Funds, Balance Sheets,
and Integrated Macroeconomic Accounts

 

Click to access z1.pdf

 

Financial Accounts:
History, Methods, the Case of Italy and International Comparisons

Papers presented at the conference held in Perugia, 1-2 December 2005

 

https://www.bancaditalia.it/pubblicazioni/altri-atti-convegni/2005-conti-finanziari/financial_accounts_proceedings.pdf?language_id=1

 

A Guide to the Integrated Macroeconomic Accounts

 

By Takashi Yamashita

 

Click to access 0413_macro-accts.pdf

 

U.S. Flow of Funds Accounts

 

Click to access USflow.pdf

 

The U.S. Flow of Funds Accounts and Their Uses

 

Click to access 0701lead.pdf

 

De Bonis, Riccardo, and Alfredo Gigliobianco.

“The origins of financial accounts in the United States and Italy: Copeland, Baffi and the institutions.”

The Financial Systems of Industrial Countries. Springer Berlin Heidelberg, 2012. 15-49.

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.470.2014&rep=rep1&type=pdf#page=11

 

Financial Accounts in Historical Perspective

RIccARdo MASSARo

Studi e Note di Economia, Anno XVI, n. 1-2011, pagg. 105-114

 

Stock-Flow Consistent Modeling

PK-SFC Modeling

  • Integration of Real and Financial sectors of economy.
  • Balance-sheet  accounting approach
  • Stock-flow consistent
  • Quadruple accounting

 

From  Post-Keynesian Stock-Flow Consistent Modeling: A Survey

 

PK-SFC models are a specific kind of Post-Keynesian macro model that follows distinctive accounting rules, ensuring the consistent integration of the stocks and flows of all the sectors of the economy. The models have three important methodological innovations: first, the consistency of the overall economy is maintained, since one sector’s outflows are always another sector’s inflows just as one sector’s liability is always another sector’s asset; second, the integration of the real and the financial side of the economy; third, the construction of the long run as a chain of short run periods. Nothing is lost, neither in space nor in time. These constraints are crucial in modeling modern macroeconomies which are highly complex, integrated systems.

The roots of PK-SFC models can be identified in the work of Morris A. Copeland (1949), who, with his study on “money flows,” is the father of the flow of funds approach. His intuition was to enlarge the social accounting perspective to the study of money flows. Copeland laid the foundations for an economic approach able to integrate real and financial flows of the economy. A concrete example of his legacy is represented by the quadruple-entry system: since someone’s inflow is someone else’s outflow, the standard double-entry system of accounting is doubled in a quadruple-entry system.

Copeland’s work certainly had a great influence on economics -mainly as a source of financial data- but its potential disruptive impact on the study and modeling of the interdependences between real and financial flows failed to occur. It was only in the 1980s, with the work of Nobel Laureate James Tobin, that these efforts culminated in the organizing theory advocated by Cohen. The article Tobin wrote with co-authors (Backus et al., 1980) perhaps best represents his path-breaking contribution in the foundation of PK-SFC models. Indeed, in developing an empirical model of the US economy in both its financial and non- financial sides, Backus et al combined the theoretical hypothesis on the behavior of the economy with a rigorous accounting framework based on the flow-of-funds social account developed by Copeland. The result is a stock-flow consistent model that includes some of the characteristics still peculiar in the literature, such as the matrices-based accounting approach and discrete time and other features, such as the stock- flow identity, which are fundamental in any model of this type.

 

Next to Tobin, the other scholar who played an essential role in the development of this family of models is Wynne Godley. Godley, head of the New Cambridge school in the 1980s, started developing models coherently integrating stocks and flows. His efforts culminated in the organized framework he developed in his more recent publications, with which he collected the legacy of Tobin. Godley’s contribution probably finds its peak in the seminal book he wrote together with Marc Lavoie (Godley and Lavoie, 2007), which is still the main reference for current PK-SFC practitioners. This paper focuses on the tradition descending from the work of Wynne Godley, hence the choice of talking of PK-SFC models rather than just SFC models.

 

Key Sources of Research:

 

Bezemer, Dirk J.

“The economy as a complex system: the balance sheet dimension.”

(2012)

 

Click to access ACS_1250047_1st_Prf.pdf

 

‘No one saw this coming’ – or did they?

Dirk Bezemer

30 September 2009

http://voxeu.org/article/no-one-saw-coming-or-did-they?quicktabs_tabbed_recent_articles_block=0

 

A complex systems approach to constructing better models for managing financial markets and the economy

J. Doyne Farmer1, M. Gallegati2, C. Hommes3, A. Kirman4, P. Ormerod5, S. Cincotti6, A. Sanchez7, and D. Helbing8

 

Click to access EconFinancialFuturITC16.pdf

 

Money Creation and Financial Instability: An Agent-Based Credit Network Approach

Matthias Lengnick, Sebastian Krug, and Hans-Werner Wohltmann

 

http://www.economics-ejournal.org/economics/journalarticles/2013-32/version_1

 

Complex agent-based macroeconomics: a research agenda for a new paradigm

Domenico Delli Gatti

Edoardo Gaffeo

Mauro Gallegati

 

Click to access delligatti_gallegati.pdf

 

 

Growing fragilities? Balance sheets in The Great Moderation

Richard Barwell and Oliver Burrows

 

Click to access fs_paper10.pdf

 

 

Credit Money and Macroeconomic Instability in the Agent-based Model and Simulator Eurace

Silvano Cincotti, University of Genoa Marco Raberto, Reykjavik University Andrea Teglio, Universitat Jaume I

 

http://repositori.uji.es/xmlui/bitstream/handle/10234/32596/45464.pdf?sequence=1

 

 

The Financial Instability Hypothesis: a Stochastic Microfoundation Framework

C. Chiarella and C. Di Guilmi

 

Click to access 09e4150ef5365dded1000000.pdf

 

 

The dynamics of the monetary circuit

Steve Keen

 

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.360.9497&rep=rep1&type=pdf

 

 

Debunking Macroeconomics

Steve Keen

 

Click to access 0c96051b9fcca21f5c000000.pdf

 

 

Causes of Financial Instability: Don’t Forget Finance

Dirk J. Bezemer

April 2011

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.194.603&rep=rep1&type=pdf

 

 

Towards a New Monetary Paradigm: A Quantily Theorem of Disaggrcgated Credit, with Evidence from Japan

By Richard A. Werner

 

Click to access KK_97_Disaggregated_Credit.pdf

 

 

Schumpeter Might Be Right Again: The Functional Differentiation of Credit

Dirk J. Bezemer

Click to access the_functional_differentiation_of_credit.pdf

 

 

Banks As Social Accountants: Credit and Crisis Through an Accounting Lens

Dirk J Bezemer

Click to access MPRA_paper_15766.pdf

 

Bezemer, Dirk J.

“This is Not a Credit Crisis–It is a Debt Crisis.”

Economic Affairs 29.3 (2009): 95-97.

 

Godley, Wynne, and Marc Lavoie.

Monetary economics: an integrated approach to credit, money, income, production and wealth.

Springer, 2012.

 

Stock-flow Consistent Modeling through the Ages

Eugenio Caverzasi Antoine Godin

January 2013

Click to access 558f0a0108ae1e1f9bace43e.pdf

 

Fiscal Policy in a Stock-Flow Consistent (SFC) Model

Wynne Godley and Marc Lavoie

April 2007

Click to access wp_494.pdf

 

Copeland, Morris A.

“Social accounting for moneyflows.” 

The Accounting Review 24.3 (1949): 254-264.

 

Finance and economic breakdown: modeling Minsky’s “financial instability hypothesis”

 

Steeve Keen

Click to access Keen1995FinanceEconomicBreakdown_JPKE_OCRed.pdf

 

The Credit Crisis and Recession as a Paradigm Test

Dirk J. Bezemer

Click to access JEI_PARADIGM_PAPER.pdf

 

Keen, Steve.

“A monetary Minsky model of the Great Moderation and the Great Recession.”

Journal of Economic Behavior & Organization 86 (2013): 221-235.

Click to access JEBO_2672.pdf

 

 

“No One Saw This Coming”
Understanding Financial Crisis Through Accounting Models

Dirk J Bezemer

 

Click to access Study-Bezemer-No-one-saw-this-coming.pdf

 

 

Understanding financial crisis through accounting models

Dirk J. Bezemer

Click to access 00b4952ce88deab0d2000000.pdf

 

Can Disequilibrium Macroeconomic Models Be Used to Anticipate Financial Instability?

A Case Study

Dirk J. Bezemer

Click to access Can_Macro_Models_JEvoLEcon_1.pdf

 

A dynamic monetary multi-sectoral model of production

Steve Keen, University of Western Sydney

Click to access Keen2011DynamicMonetaryMultisectoralModel.pdf

 

Circuit Theory Extended: The Role of Speculation in Crises

Neil Lancastle

https://www.dora.dmu.ac.uk/bitstream/handle/2086/11640/economics_2012-34.pdf?sequence=1&isAllowed=y

 

Debt cycles, instability and fiscal rules: a Godley-Minsky model

Yannis Dafermos

 

Click to access Dafermos%20(2015)%20Debt%20cycles%20instability%20and%20fiscal%20rules.pdf

 

The post-Keynesian economics of credit and debt

Marc Lavoie

Click to access inet2012lavoie_post-keynesianeconomics.pdf

 

Assessing the Contribution of Hyman Minsky’s Perspective to Our Understanding of Economic Instability

Hersh Shefrin

 

Click to access Shefrin%20Assessing%20Minsky%20Jan%2013%202013.pdf

 

Modeling Financial Instability

Steve Keen

 

Click to access Keen2014ModelingFinancialInstability.pdf

 

 

Post-Keynesian Stock-Flow Consistent Modeling: A Survey

Eugenio Caverzasi and Antoine Godin

 

Click to access february_2015_-_kbs_research_bulletin_pdf.pdf

 

Godley and Graziani: Stock-Flow-Consistent Monetary Circuits

Gennaro Zezza

April 2011

 

Click to access 65034-Zezza%20-%20Godley%20and%20Graziani.%20Stock-Flow-Consistent%20Monetary%20Circuits.pdf

 

Features of a realistic banking system within a post-Keynesian stock-flow consistent model

Marc Lavoie,

Wynne Godley,

December 2003

 

Click to access 1321739.pdf

 

Words to the Wise: Stock Flow Consistent Modeling of Financial Instability

Stephen Kinsella

November 2011

Click to access 6228912.pdf

 

The Minskyan System, Part III:
System Dynamics Modeling of a Stock Flow–Consistent Minskyan Model

Eric Tymoigne

June 2006

Click to access wp_455.pdf

 

TOWARDS A RECONSTRUCTION OF MACROECONOMICS USING A STOCK FLOW CONSISTENT (SFC) MODEL

Wynne Godley

May 2004

 

https://www.repository.cam.ac.uk/bitstream/handle/1810/225167/wp16.pdf?sequence=1&isAllowed=y

 

A foxy hedgehog: Wynne Godley and macroeconomic modelling

Lance Taylor

 

Click to access ramanan-20100615T083857-gsl2drg.pdf

 

 

Some Simple, Consistent Models of the Monetary Circuit

Gennaro Zezza,

May 2004

 

Click to access 9314338.pdf

 

Money and Macroeconomic Dynamics : Accounting System Dynamics Approach

Edition 2.0

Kaoru Yamaguchi Ph.D.

 

Click to access Macro%20Dynamics.pdf

 

Money Creation under Full-reserve Banking: A Stock-flow Consistent Model

Patrizio Lainà

October 2015

Click to access wp_851.pdf

 

Endogenous Feedback Perspective on Money in a Stock-Flow Consistent Model

Working Paper (May 5, 2016)

I. David Wheat

Click to access Wheat%20Endogenous%20Feedback%20Perspective%20on%20Money%20WP.pdf

 

 

Modeling the Economy as a Whole – Stock-Flow Models
Gennaro Zezza

 

Click to access memf2015-Chapter25-Gennaro.pdf

 

 

FINANCIALIZATION AND THE MONETARY CIRCUIT: A MACRO-ACCOUNTING APPROACH

MARCO PASSARELLA

 

Click to access MVP%20ROPE%202014.pdf