Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190056 
Year of Publication: 
2018
Series/Report no.: 
WIDER Working Paper No. 2018/7
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
We develop a stock-and-flow-consistent model for South Africa with four financial instruments and detailed balance sheets for the household, government, financial, non-financial, and foreign sectors and the Reserve Bank. Though micro-founded, the model departs significantly from current dynamic stochastic general equilibrium models as it assumes bounded rationality and no Ricardian equivalence. The stock and flow consistency makes it better suited to studying balance sheet dynamics and the real sector/financial sector interaction. In the model, cyclical flow changes affect the long-term real and financial behaviour of institutions through their impact on the respective institutional assets and liabilities stocks.
Subjects: 
stock and flow
macroeconomic
model
financial
computable general equilibrium
JEL: 
C68
D53
D58
E44
E47
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-449-0
Document Type: 
Working Paper

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