Book review of Heterodox Challenges in Economics by Sergio Cesaratto.
An abridged version has been published in July 2021 in the Review of Keynesian Economics, 9(3), 432–434.
Notes on Gross Capital Flows and the Balance-Of-Payments
In the context of the 2007-08 Global Financial Crisis and the 2010-12 Eurozone Crisis, trade imbalances and capital flows received a lot of attention from academics, policymakers and the media. However, there is still a great deal of disagreement and confusion around the logical and causal relationship between current accounts and capital flows. This partly stems from an incomplete understanding of how gross capital flows work. The notes try to clear up some misunderstandings by presenting basic facts and key results from research on gross flows from a monetary perspective. Balance-sheet accounting is utilised to illustrate how different kinds of gross flows play out on domestic balance sheets and in the balance-of-payments. I’ve tried to do this in an accessible way so that these notes may also be useful for teaching purposes. This is work in progress and comments are welcome!
Workshop on endogenous business cycle models
I contributed to Exploring Economics, an open access, e-learning platform that provides an excellent introduction to different paradigms in economics and lots of useful material for self-study.