The legacy of Wynne Godley

Abstract

Godley’s approach is macroeconomic without micro-foundations, based on national accounts with an integrated treatment of the real and financial sides of the economy, stock flow consistent (SFC). In this framework the main economic imbalances at the national and world levels have been usefully analyzed. The SFC approach is well suited to study some of the post-corona period main issues (management of the increasing public debt, specificities of the euro zone system). But the difficulties of the task must not be underestimated (efforts to develop empirical SFC models, modeling the supply side).