Tobin Lives: integrating evolving credit market architecture into flow of funds based macro-models

Working paper

After the global financial crisis, there is greater awareness of the need to understand the interactions between the financial sector and the real economy and hence the potential for financial instability. Data from the financial flow of funds, previously relatively neglected, are now seen as crucial to the data monitoring carried out by central banks. This paper revisits earlier efforts to understand financial-real linkages, such as those of Tobin and the Yale School, and proposes a modell...

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Authors: Muellbauer, J; Duca, J

• Publication status: Published
• Publisher: University of Oxford Publisher's website
• Series: Department of Economics Discussion Paper Series
• Publication date: 2012-09-16
• Paper number: 622
• Keywords: modeling the flow of funds; credit constraints; finance and the real economy; consumption; wealth effects; financial frictions; financial crisis; household portfolios