MONETARY ECONOMICS: POST-KEYNESIAN STOCK-FLOW CONSISTENT APPROACH (PK-SCF) VERSUS NEW-KEYNESIAN DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM (NK-DSGE)

Dushko Joshevski; Tatjana Boshkov

doi:10.46763/YFNTS2141025j

Dushko Joshevski
Tatjana Boshkov

DOI: https://doi.org/10.46763/YFNTS2141025j

Abstract

In this paper we are thinking like Keynesians. In the first part we are modeling economy by using Post-Keynesian Stock-Flow consistent model (PK-SCF), later we employ New- Keynesian Dynamic Stochastic General Equilibrium model (NK-DSGE). Keynesian SFC practitioners strongly believe that their models are closer than others to the ideal of providing macroeconomists with logical equivalents to ‘artificial economies’. DSGE practitioners on the other hand think that there is no credible alternative in macroeconomic policy thinking to theirs. Authors personally think NK-DSGE model to be superior since it is micro founded and it is improvable.

Keywords: PK-SCF, NK-DSGE, monetary economics

JEL: E12, E50