903. Technical change and the monetary circuit: an input-output stock-flow consistent dynamic model

Working Paper n.903 - Settembre 2023

Marco Veronese Passarella

Link Campus University of Rome – Leeds University Business School
This paper is organised as follows. Firstly, a simple but complete input-output stock-flow consistent dynamic model of a monetary economy of production is developed, in which credit money is endogenously created by commercial banks, the production sector is split into different industries, and unit prices align with their reproduction values in the long run, while supplies gradually adjust to meet final demands for products. Secondly, after discussing its key features, themodel is used to test the impact of technical change on industry-specific financial requirements and profitability.
Monetary Circuit, Stock-Flow Consistent Models, Input-Output Analysis
Jel Codes
E16, E17, C67, D57