A dynamic Stock Flow model for the Argentine economy

Working papers | 2021 | N 89

Abstract

This document develops a Stock-Consistent Flow (SFC) model for the analysis of macroeconomic variables in Argentina. The main usefulness of SFC models is associated with the possibility of carrying out counterfactual exercises to evaluate different modifications of fiscal, tax, monetary and commercial policy. These models are characterized by the use of social accounting matrices (SAM), which implies the disaggregation of the capital account and the financial instruments of each institutional sector. This gives it accounting consistency, since the SAM contains the main transactions of the real sector, as well as the monetary flows between the different institutions: households, companies, banks, government, central bank and the rest of the world. This model was developed with the objective of making medium-term projections on the main flows and stocks of the Argentine economy, complementing the results of other existing models in the literature.

JEL classification: C54; E16; E58