Show Summary Details
This content is available to you

Confidence and financial crisis in a post-Keynesian stock flow consistent model

Edwin Le Heron

The paper aims at showing that one of the main channels by which the US 2007 financial crisis became a real and global economic crisis is the ›confidence channel‹, i.e. that the financial crisis affected firms, banks and households' expectations and confidence, thus leading to what they were fearing. And I propose to model expectations and the state of confidence of private agents to use the indexes calculated by national statistical services from monthly polls.

Full Text

The full text of this journal article is available as a pdf