383:. Wolf explained: "The essential idea is that since income has to equal expenditure for the economy, as a whole, (which is the same thing as saying that savings equals investment) so the sums of the difference between income and expenditures of each of the sectors of the economy must also be zero. These differences can also be described as “financial balances”. Thus, if a sector is spending less than its income it must be accumulating (net) claims on other sectors. The crucial point is that, since sectoral balances must sum to zero, a rise in the deficit of one sector must be matched by an offsetting change in the others. It follows that if the fiscal deficit is increasing, the sum of the surpluses of the other sectors of the economy must be increasing in a precisely offsetting manner." Wolf explained that a large increase in the private sector financial balance drove a large increase in government deficits.
403:
low-quality. The implication is that although research levels are high in
Britain, industry has been laggard in implementing innovation. The model after 1979 points to the appreciation of sterling against other currencies, so that British products are more expensive. In terms of policy, the New Cambridge model recommends general import controls, or else unemployment will continue to mount. The model indicates that deindustrialization is a serious problem which threatens the nation's ability to maintain balance of payments equilibrium in the long run. The situation after North Sea oil runs out appears troublesome. Deindustrialisation imposes serious social consequences. Workers skilled in the manufacturing sector are no longer needed, and are shuffled off to lower paying, less technologically valuable jobs. Computization and globalization are compounding that problem.
356:
314:, chief economic advisor to the treasury: "In the 2000s, much of which coincided with a period of apparent and widely researched stability, what stands out is his distinctive analysis and his prescience about the looming financial and economic crisis, and the potential role for what had become by then innovative policies in responding." In 1992 he warned that without shared fiscal policy to replace currency movements there would be problems with monetary union in Europe.
189:
33:
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of Bard
College in New York State, where his work focused on the strategic prospects for the US and world economies, and the use of accounting macroeconomic models to reveal structural imbalances. In 1998, he was one of the first to warn that the growing imbalance in the global economy, fuelled by
397:
Godley developed the "New
Cambridge" model of deindustrialisation. It stresses the long-term Decline and competitiveness of British industry. During the 1970s especially, the manufacturing sector steadily lost its share of both home and international markets. The historic substantial surplus of
402:
primarily, and to a lesser extent from some efficiency improvement in agriculture and service sectors. The New
Cambridge model posits several different causes for the decline in competitiveness. Down to the 1970's, the model stresses bad delivery times, poor design of products, and general
615:
232:
and Philip
Andrews, one of the main economists of the Oxford Economic Research Group, were two of his most important mentors. Godley trained to become a professional musician, studying at the
299:. He predicted that the 1973–74 economic boom would end, and that unemployment would hit 3 million in the 1980s. As one of his proteges noted, these dire warnings "… earned him the title '
160:(26 September 1926 – 13 May 2010) was an economist famous for his pessimism about the British economy and his criticism of the British government. In 2007, he and
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where he worked in macroeconomic policy issues and short term forecasting, bridging economic and policy issues, including the 1967 devaluation of the pound under
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240:. He was however continuously nervous about performing in public, and gave up this career, although he remained interested in music and was director of the
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Francis Cripps, and Wynne Godley, "Control of imports as a means to full employment and the expansion of world trade: the UK's case."
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argues that Godley was notable for being one of relatively few economists to predict the nature of the
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and his wife
Elizabeth Usborn. He was born six years after his older brother, John who was to become
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Francis Cripps, and Wynne Godley, "A formal analysis of the
Cambridge economic policy group model."
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Monetary
Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth
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531:"Wynne Godley obituary: Economist with a flair for anticipating and responding to crises"
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of the late 2000s well in advance, and for doing so on the basis of a formal model.
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of the late 2000s well in advance, and for doing so on the basis of a formal model.
738:„No One Saw This Coming“: Understanding Financial Crisis Through Accounting Models.
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His contributions to
Treasury policy thinking over the years were acknowledged by
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exports over
Imports slipped into an even balance. That balance is maintained by
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Monetary Economics: Integrated Approach to Money, Income, Production and Wealth
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the sculptor, who used his "impossibly handsome" head as the model for his
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burgeoning American private sector debt, was unsustainable. His book
616:"Lamont's 'seven wise men' fall out as professor goes on the attack"
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FT-Martin Wolf-The balance sheet recession in the U.S.-19 July 2012
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Cripps, Francis; Lavoie, Marc (2017). "Wynne Godley (1926–2010)".
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argues that Godley was notable for predicting the nature of the
756:"Embracing Wynne Godley, an Economist Who Modeled the Crisis"
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After his musical career ended he became an economist at the
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for three years, and then becoming principal oboist at the
649:. Vol. 14, no. 19. 8 October 1992. pp. 3–4.
789:. The Levy Economic Institute of Bard College. p. 27
784:"Fiscal Policy in a Stock-Flow Consistent (SFC) Model"
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Deindustrialisation by country § United Kingdom
295:'s 'seven wise men' external economic advisors after
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company, and then from 1956 to 1970 he worked at the
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Fiscal Policy in a Stock-Flow Consistent (SFC) Model
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845:Interviewed by Alan Macfarlane 16 May 2008 (video)
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168:Consistent" model, an analysis that predicted the
224:then read politics, philosophy and economics at
201:, the head of which was modelled on Wynne Godley
810:The Palgrave Companion to Cambridge Economics
489:The Palgrave Companion to Cambridge Economics
8:
307:' and were derided – until they came true".
782:Godley, Wynne; Lavoie, Marc (April 2007).
470:Wynne Godley and Marc Lavoie, April 2007.
449:Wynne Godley and T. Francis Cripps, 1983.
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754:Schliefer, Jonathan (10 September 2013).
317:In 1983, Godley published a book called
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324:In 1995, Godley took up a post at the
244:from 1976 to 1987. In 1955 he married
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339:stock-flow consistent macro modelling
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900:Fellows of King's College, Cambridge
740:MPRA Paper No. 15892, 16 June 2009 (
432:Wynne Godley and Marc Lavoie, 2007.
935:20th-century British male musicians
587:"Professor Wynne Godley: economist"
321:, co-authored with Francis Cripps.
194:St Michael's Victory over the Devil
905:People educated at Sandroyd School
558:"Obituary: Professor Wynne Godley"
287:and director of the department of
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660:Thurow, Lester (September 1983).
407:Prediction of the Great Recession
211:John Godley, 3rd Baron Kilbracken
207:Hugh Godley, 2nd Baron Kilbracken
930:20th-century classical musicians
629:from the original on 7 May 2022.
910:People educated at Rugby School
585:Henderson, Mark (17 May 2010).
529:Keegan, William (20 May 2010).
279:, who persuaded him to move to
275:. While at the Treasury he met
142:Stock-Flow Consistent Modelling
712:Cambridge Journal of Economics
613:Chote, Robert (7 March 1993).
359:Graphic illustrating Godley's
220:in Wiltshire before attending
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915:Alumni of New College, Oxford
662:"Keynesianism in One Country"
205:Godley was born in London to
818:10.1057/978-1-137-41233-1_42
283:where he became a fellow of
373:sectoral financial balances
361:sectoral financial balances
146:Sectoral financial balances
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870:Civil servants from London
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379:in a 2012 analysis of the
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170:2007–2008 financial crisis
885:English classical oboists
880:Post-Keynesian economists
641:"Maastricht and All That"
474:, Working Paper No. 494,
371:gave credit to Godley's "
345:Contribution to economics
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920:Analysands of Masud Khan
725:What's What in the 1980s
476:Levy Economics Institute
326:Levy Economics Institute
164:wrote a book about the "
110:Post-Keynesian economics
925:Younger sons of barons
666:London Review of Books
646:London Review of Books
487:Robert A. Cord, 2017.
436:, Palgrave MacMillan.
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391:Further information:
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333:(2007), written with
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895:British male oboists
714:2.3 (1978): 327-334.
377:analytical framework
363:analytical framework
281:Cambridge University
254:statue of St Michael
563:The Daily Telegraph
387:Deindustrialisation
238:BBC Welsh Orchestra
234:Paris Conservatoire
226:New College, Oxford
120:John Maynard Keynes
875:British economists
761:The New York Times
727:(1982), pp 86-878.
723:Christopher Pick,
493:Palgrave MacMillan
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258:Coventry Cathedral
203:
98:Monetary economics
827:978-1-137-41233-1
736:Dirk J. Bezemer:
501:978-1-137-41232-4
351:Sectoral balances
289:applied economics
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256:at the rebuilt
218:Sandroyd School
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445:Description.
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312:Dave Ramsden
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222:Rugby School
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174:Dirk Bezemer
158:Wynne Godley
157:
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79:Kitty Garman
60:(2010-05-13)
37:Wynne Godley
25:Wynne Godley
18:
865:2010 deaths
860:1926 births
812:: 929–953.
767:23 November
598:23 November
570:23 November
542:23 November
369:Martin Wolf
335:Marc Lavoie
242:Royal Opera
162:Marc Lavoie
128:James Tobin
67:Nationality
58:13 May 2010
854:Categories
507:References
367:Economist
166:Stock-Flow
116:Influences
695:Economica
592:The Times
301:Cassandra
265:Metal Box
197:, by Sir
106:tradition
627:Archived
269:Treasury
793:7 March
303:of the
70:British
824:
699:online
499:
465:Papers
457:
440:
228:where
75:Spouse
787:(PDF)
427:Books
94:Field
822:ISBN
795:2023
769:2019
600:2019
572:2019
544:2019
497:ISBN
455:ISBN
438:ISBN
305:Fens
184:Life
55:Died
43:Born
814:doi
742:PDF
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