Macro Micro Model with a Post-Keynesian Perspective in the banking industry

Hyejin Cho (1)

1 CES - Centre d'économie de la Sorbonne

This article introduces the cascaded individual model of Post-keynesian economics. This differs from the representative agent model of the old-keynesian model mathematically and methodologically. The model builds from five assumptions containing original concepts: cascaded individuals, a social planner vs a regulator, aggregate deposits (stock) vs pyroclastic deposits (flow). Mainly, this Macro-Micro approach of Post-keynesian concepts suggests the regulation of the money flow. Then, this paper articulates fundamental concepts to solve problems of a sudden "micro" financial shock in the short run with the long run "macro" stabilization with a balanced perspective between macroeconomics and microeconomics.

Mots clés: macro micro model; Post-keynesian; banking industry; general equilibrium; endogenous money creation; representative agents; cascaded individuals; aggregate deposits; pyroclastic deposits; social planner; regulator; moral hazard problem

Domaines: Economies et finances

Hyejin Cho. Macro Micro Model with a Post-Keynesian Perspective in the banking industry. The Third Nordic Post-keynesian Conference, May 2014, aalborg, Denmark. ⟨hal-00994282v1⟩