A Post-Keynesian Approach
Edited by Claude Gnos, Louis-Philippe Rochon and Domenica Tropeano
Chapter 3: The Redistribution Conflict in the ‘Patrimonial Regime’ through a Stock–Flow Consistent Model
Mickaël Clévenot and Yann Guy1 The financial liberalization, undertaken at the end of the 1970s in the USA and in the UK was followed in the mid-1980s by a large majority of countries. In France, liberalization of the stock accounts was completed in 1989. Some laws organizing national market liberalization, from 1984 onwards, had previously been passed. The impact of financial liberalization remains ambiguous considering the diversity of results. In Japan, it brings to mind the deflationary crisis of the 1990s. In all countries, it led to more or less pronounced banking crises (Ben Gamra and Clévenot 2006). In the medium term, the US and the UK experiment looks positive, whereas France is suffering from slow growth. Financial liberalization seems to require an institutional environment that is not present everywhere. In other words, the new institutional hierarchy imposed by finance does not spontaneously meet the complementarities that are necessary to fulfil a finance-led accumulation pattern. These conditions will be tested on models of closed economies. Standard models fail to apprehend correctly the formal treatment of accumulation pattern controlled by stock effects. The neoclassical–Keynesian synthesis models produce many inconsistencies as regards currencies and financial assets, particularly in stock–flow relations, due to a non-existent accounting consistency and unaccounted-for stock effects, which are however implicit in the definition of equilibrium link flows (Taylor 2004a, 2004b). In neoclassical models with rational expectations, at the equilibrium there is no difference between flows and stocks; that is, either a flow or...
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