Abstract

This Thesis follows the Post-Keynesian stock-flow consistent approach. This thesis provides some insight into the dynamics of aggregate behavior by means of numerical simulations, suggesting interesting closures grounded in Godley and Lavoie 2007 book. This thesis studies and analyzes some phenomena that could be involved, or affected, by the recent global financial crisis. The thesis contributions are study how house price variations affect both the real and the financial sides of the economy, study financial integration and see its effects on integrated economies, and explore the impact of credit crunch and it contagion on both domestic and foreign economies.