Seminar Details
2018-09-18 (14:00) : The Stock-Flow Consistent approach or the importance of disequilibrium
At Euler building (room A.002)
Organized by Mathematical Engineering
Speaker :
Antoine Godin (Agence Française de Développement)
Abstract :
Stock-Flow Consistent (SFC) models are sectoral macroeconomic models that combine two fundamental insights: first, the economy is ruled by imbalances and its reactions to these imbalances, and second, the economy is a dynamical multi-layered network of financial relationships. By combining these two aspects, SFC models are a powerful tool to understand modern financialised economies in modelling feedback loops between exchanges of good and services, financial flows, and wealth. The GEMMES research project at the French Agency for Development aims at contributing to the international debate related to climate change (both for the adaptation and mitigation aspects). Given the importance and the pervasive aspect of the transition to a low carbon economy, it is fundamental to be able to grasp how it will re-shape, create or steer imbalances and hence might lead to unsustainable dynamics such as financial crisis. This seminar will go through three different modelling approaches, all using the insight of Stock-Flow Consistency, to show the importance of disequilibrium and imbalances in economics