In the 1970s, at a time of shock, controversy and uncertainty over the direction of monetary and fiscal policy, Wynne Godley and the Cambridge Department of Applied Economics rose to prominence, challenging the accepted Keynesian wisdom of the time. This collection of essays brings together eminent scholars who have been influenced by Godley's enormous contribution to the field of monetary economics and macroeconomic modeling. Godley's theoretical, applied and policy work is explored in detail, including an analysis of the insightful New Cambridge 'three balances' model, and its use in showing the progression of real capitalist economies over time. Godley's prescient concerns about the global financial crash are also examined, demonstrating how his work revealed structural imbalances and formed the foundations of an economics relevant to the instability of finance.
Wynne Godley's Economics; D.Papadimitriou Godley Works in Mysterious Ways: the craft of economic judgement in postwar Britain; T.Mata Godley Got it Right; L.R.Wray Who are These Economists, Anyway? J.K.Galbraith A Look at New Cambridge: will the UK private expenditure function stand up? B.Martin Three Balances and Twin Deficits: Godley versus Ruggles and Ruggles; A.Shaikh From Macroeconomics to Monetary Economics: some persistent themes in the theory work of Wynne Godley; M.Lavoie Godley and Graziani: stock-flow consistent monetary circuits; G.Zezza The stock-flow consistent approach with active financial markets; J.Toporowski & J.Michell Financial integration and stabilization in a monetary union without or with bank rationing; V.Duwicquet & J.Mazier Debt-Deflation Traps within Small Open Economies: a stock-flow consistent perspective; S.Kinsella A Debate with Wynne Godley on the Neutrality of Fiscal Policy; E.Le Heron The Effectiveness of Fiscal Policy in the Levy Institute's Stock-Flow Model; P.Arestis & M.Sawyer Of Unsustainable Processes and the US Dollar; J.Bibow Squaring the Circle in Euroland? Some Remarks on the Stability Programmes 2010-2013; M.Brecht, S.Tober, T.van Trreeck & A.Truger Wynne Godley: A Bibliography Index