7 Pages Posted: 12 Dec 2010
Date Written: July 29, 2009
Develops a simple model of aggregate demand that explicitly incorporates the financial sector balances approach of Wynne Godley. Demonstrates how this can be used to understand the 1990s expansion and the recession beginning in late 2000s.
Keywords: sector financial balances, aggregate demand
JEL Classification: E1, E2, E3
Suggested Citation: Suggested Citation