This work was published as a chapter of Post-Keynesian Economics for the Future: Sustainability, Policy and Methodology, published by Edward Elgar Publishing.
The 2008 and Covid crises have led to increasing public debts and to the launching of unconventional economic policies. Thanks to a complete description of the balance sheets of the domestic and foreign agents, stock-flow consistent (SFC) modelling was well equipped to evaluate their economic consequences. The founding works of Godley and Lavoie (Godley, 1999; Lavoie and Godley, 2001; Godley and Lavoie, 2007) on SFC modelling were simply calibrated. Since 2005, better calibrated or econometrically based SFC models have become more frequent. The Levy model of the United States (Godley et al., 2005) was a forerunner. A first version of an econometric SFC model of the French economy based on the accumulation accounts of INSEE and on the financial accounts of the Bank of France has been presented (Mazier and Reyes, 2022a). This provides the overall structure, the main equations and the basic properties of the model.
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