Topics on open economy macroeconomics : a stock-flow consistent approach.

Summary This thesis presents a series of theoretical studies sharing a common methodology: the use of consistent stock-flow models. Based on the failure of the traditional economic analysis tool, DSGE models, I attempt to show what are the main drawbacks of these models, which include both methodological problems and the omission of some crucial aspects of reality (e.g. the role of money and financial markets). In the first chapter of this thesis I show why consistent stock-flow models offer a more accurate vehicle for understanding modern economies. These reasons, which are related to a higher concern with realism, accounting accuracy, and the interaction between different economic agents and social institutions, explain why consistent stock-flow models were successful in detecting the instabilities that were building up in the years before the outbreak of the global financial crisis. After explaining the motivation for studying macroeconomic dynamics through coherent stock-flow models I present three chapters in which these models are adapted to the study of some specific real-world problems, which have been and still are relevant and have a privileged place in the political agenda. In the second chapter, I study some of the different alternatives for the reform of the international monetary system that have been proposed since the end of the Second World War. Starting with a model that describes the current state of affairs, it is shown how this model can be modified in order to examine how each of the alternative solutions might work. These solutions include options that have been widely debated for decades, such as the introduction of the SDR (the currency issued by the IMF) and the bancor (the international currency that Keynes proposed, with the creation of an international clearing house). After building the models, simulation exercises are conducted. These experiments show how each solution could provide a better global environment for the development of international economic relations. In particular, it is found that the establishment of a clearing house as Keynes proposed would not only be beneficial in reducing global imbalances, but also it could produce a high level of effective demand in a global scale.