featuringfeMark Setterfield, Maloney Family Distinguished Professor of Economics
Growth and crisis are well established themes in economic theory, with obvious contemporary relevance. The multi-agent system (MAS) approach to economic modeling, meanwhile, is still in its infancy.
This presentation features a MAS model of real and financial sector interaction, in which heterogeneous firms depend on the financial sector for the intermediation and money creation necessary to facilitate their investment spending. Investment spending, in turn, drives growth and profitability in the real sector, which affects the sentiment of heterogeneous “traders” in the financial sector and hence their willingness to finance investment and buy financial assets. The resulting model permits study of the effects of different financial network structures and monetary regimes on the performance and resilience of the economy – i.e., its capacity for growth, and its propensity to encounter crisis.
In addition to being the Maloney Family Distinguished Professor of Economics in the Department of Economics at Trinity College, Setterfield is also an associate member of the Cambridge Centre for Economic and Public Policy at Cambridge University (UK), a senior research associate at the International Economic Policy Institute at Laurentian University (Canada), and a member of the Centre d’Économie de l’Université Paris Nord (CEPN) at l'Université Paris XIII (France). His main research interests are macrodynamics (with a particular focus on the development and application of concepts of path dependence) and Post-Keynesian economics.
He is the author of Rapid Growth and Relative Decline: Modelling Macroeconomic Dynamics with Hysteresis (Macmillan, 1997), the editor or co-editor of six volumes of essays, and has published in numerous journals including the Cambridge Journal of Economics, Journal of Post Keynesian Economics, European Economic Review, Review of Political Economy, Journal of Economic Issues, and The Manchester School.
The Maloney Family Distinguished Professorship of Economics Fund was endowed in 2008 with gifts from Leslie Warner-Maloney and Kevin J. Maloney, Ph.D., 1979, of Westwood, Massachusetts, supporting Maloney Distinguished Professors and their focus on teaching and research on topics of global economic significance. Maloney is a member of the College’s Board of Trustees.
Reception to follow in Faculty Club, Hamlin Hall.