EViews macros for building models in
Wynne Godley and Marc Lavoie
Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth

' Basic behavioural equations

' Supply of consumption goods - eq. 7.1
bmw_mod.append c_s = c_d

' Supply of investment goods - eq. 7.2
bmw_mod.append i_s = i_d

' Supply of labour - eq. 7.3
bmw_mod.append n_s = n_d

' Supply of loans - eq. 7.4
bmw_mod.append l_s = l_s(-1) + (l_d - l_d(-1))

' Transactions of the firms
' GDP - eq. 7.5
bmw_mod.append y = c_s + i_s

' Wage bill - eq. 7.6
bmw_mod.append wb_d = y - r_l(-1)*l_d(-1) - af

' Depreciation allowances - eq. 7.7
bmw_mod.append af = delta*k(-1)

' Demand for bank loans - eq. 7.8
bmw_mod.append l_d = l_d(-1) + i_d - af

' Transactions of households

' Disposable income - eq. 7.9
bmw_mod.append yd = wb_s + r_m(-1)*m_h(-1)

' Bank deposits held by households - eq. 7.10
bmw_mod.append m_h = m_h(-1) + yd - c_d

' Transactions of the banks

' Supply of deposits - eq. 7.11
bmw_mod.append m_s = m_s(-1) + (l_s - l_s(-1))

' Rate of interest on deposits - eq. 7.12
bmw_mod.append r_m = r_l

' The wage bill

' "Supply" of wages - eq. 7.13
bmw_mod.append wb_s = w*n_s

' Labour demand - eq. 7.14
bmw_mod.append n_d = y/pr

' Wage rate - eq. 7.15
bmw_mod.append w = wb_d/n_d

' Household behaviour

' Demand for consumption goods - eq. 7.16
bmw_mod.append c_d = alpha0 + alpha1*yd + alpha2*m_h(-1)

' The investment behaviour

' Accumulation of capital - eq. 7.17
bmw_mod.append k = k(-1) + i_d - da

' Depreciation allowances - eq. 7.18
bmw_mod.append da = delta*k(-1)

' Capital stock target - eq. 7.19
bmw_mod.append k_t = kappa*y(-1)

' Demand for investment goods - eq. 7.20
bmw_mod.append i_d = gamma*(k_t - k(-1)) + da

' The behaviour of banks

' Interest rate on loans - eq. 7.21
bmw_mod.append r_l = r_l_bar