Flow based economics
In 1999 Wynne Godley penned “Seven Unsustainable Processes” where he, based on a new-Keynesian concept of sectoral financial balances, predicted the forthcoming recession. Godley pointed to seven unsustainable processes within the US economy that rendered it vulnerable to sudden shocks. More specifically, Mr. Godley found that the US boom of the 1990s was based on;…