Foreign debt in a simple Stock-Flow Consistent Kaleckian growth model

PABLO GABRIEL BORTZ; SERVAAS STORM

Berlin

Conferencia; 14 Conference of Research Network Macroeconomics and Macroeconomic Policies (FMM); 2010

We present an open economy growth model, using the Stock-Flow Consistent (SFC) methodology. We integrate international financial flows consideration into a demand-led growth model, with Kaleckian features. We investigate the effects and interactions that these inflows (and outflows) have on income distribution, foreign debt (both public and private), fiscal and monetary policy, both under fixed and freely floating exchange rate regimes.