The paper presents a simple Stock-Flow Consistent open economy model with flexible exchange rates. It can reproduce the same dynamics and results of rates ‘benchmark’ by Godley Lavoie [2007b. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production Wealth. London, UK: Palgrave MacMillan]. latter is considered ‘centre gravity’ SFC literature. Yet new uses only one-third eq...

This paper analyses the e¤ects of reducing unfunded social security and population ageing on economic growth and welfare, both for a small open economy and for a closed economy. The economy consists of a service sector and a commodity sector. Productivity growth only occurs in the latter sector and is assumed to depend positively on its size. It is shown that if old agents mainly demand labour ...