Social Ecological Economics II

This block introduces the macrofinancial implications of climate change through stock-flow consistent (SFC) modeling. It combines hands-on model construction with critical discussion of policy-oriented macrofinancial frameworks.

The course is organized as six two-hour lectures, delivered to two groups, and structured around two linked activities:

• discussing transmission channels between the environment, economy, and financial system in the literature.
• developing an understanding of sectoral balances, government money, and bank money
• building basic SFC models

Lecture outline

• Unit 1: Environment-Economy-Finance nexus
• Unit 2: Sectoral flows and balances
• Unit 3: The simplest SFC model with expectations (SIMEX)
• Unit 4: Portfolio choice and sovereign debt (PCEX)
• Unit 5: Monetary circuit and bank money
• Unit 6: The DEFINE framework (paper discussion groups)
• Unit 7: The state of the art in SFC modeling
• Unit 8: The GEMMES framework (paper discussion groups)

Interactive notebooks

The course made use of some interactive notebooks utilizing python and the MacroStat framework to simulate simple SFC models. The code for these can be found here: github.com/KarlNaumann/SEEIIModels