Received: 1. January 2010. Accepted: 28. June 2010.

ABSTRACT

We explore the dynamical properties of the Godley-Lavoie model with a focus on Central Bank horizons. The stability properties of modes of regulation are traced from a regime of private bank money to the current crisis with the Central Bank levers of short-term bonds issue to the emerging policy regime of long-term bonds as built-in stabilizers.

KEY WORDS

financial crises, long-term bonds

CLASSIFICATION

JEL:

E12, E42