Full text: Extension of the empirical stock-flow consistent (SFC) model for Austria (163)

IHS—Miess, Schmelzer/SFC Model Austria—17
as this amount of NLNB exactly is the result of all non-financial flows as calculated by the
Statistik Austria, and we had to stick to the logic of the data here. Now, to avoid inconsistency
within our modelling framework, we introduced a residual in the TFM that we keep fixed on
its 2014 value for the forecast to avoid distortions of the model dynamics emanating from this
parameter. That this residual is a non trivial figure can be seen by figure 2 above. Here, we
show the difference between NLNB for the financial and non-financial accounts for the years
1995 - 2014 from the data, i.e NLNBfinancial account ?NLNBnon?financial account. While the
household sector and the government are agreed on by the institutions gathering these data, the
differences for the sectors RoW, NFC and FC seem quite pronounced and follow no clear pattern
except for the basic logic that the sum of NLNB over all sectors has to be zero (to be discussed).
2.2.2 Balance Sheet Matrix
Table 3 shows the aggregated balance sheet matrix for the SFC model. While we have kept the
finest disaggregation of institutional units with a focus on sub-units of the FC sector, we decided
to aggregate financial assets/liabilities to simplify the model structure. The major financial
assets/liabilities depicted in our model are given below. For further reference on the types of
financial assets, see Eurostat (2013)[Chapter 5, pages 125 - 157]
F1: Monetary gold, SDRs - Monetary gold is gold bullion under effective control of mon-
etary authorities (central bank) and which is held in reserve assets. SDRs are reserve assets
created by the International Monetary Fund (IMF) which are allocated to members to supple-
ment existing reserves. Thus, this asset is issued solely by the central bank agent, with the Rest
of World (RoW) holding the major counter position as a liability.
F2: Currency and deposits - Currency (F21) is notes and coin issued or authorised by
monetary authorities, both national and foreign currencies held by national residents.
Deposits in general are standardised, non-negotiable contracts with the public at large, offered
by deposit-taking corporations (in some cases by the central government), allowing placement
and later withdrawal of the principal by the creditor. Usually, the debtor gives back the full
amount of the principal to the creditor.
More specific, transferable deposits (F22) are exchangeable for currency at par, and directly
used for payment without penalty or restriction. This includes payment facilities such as cheque,
draft, giro order, direct debit/credit, but also inter-bank positions between FC, deposits held
at the central bank by other monetary institutions, or foreign currency deposits under swap
arrangements.
Other deposits (F29) are all deposits other than transferable deposits. They cannot be used
to make payments except on maturity or after an agreed period, and they are not exchangeable
for currency without a significant restriction or penalty. This includes time deposits not imme-
diately available for withdrawal (subject to fixed term or redeemable at notice of withdrawal);
savings deposits, books and non-negotiable certificates; deposits resulting from a saving scheme
or contract; deposits issues by savings and loans associations, building societies, credit unions etc.
redeemable at relatively short notice but not transferable; or short-term repurchase agreements
(repos) which are a liability of monetary financial institutions.
In our balance sheet data and thus also the model, deposits are issued as a liability by banks,
the central bank, the RoW and the government (the latter to a small extent). The vast majority
is issued by banks (more than 592 bln. Euro) as a liability, less by the RoW (ca. 152 bln. Euro)
and the central bank (ca. 88 bln. Euro). They are held by all other agents in the economy as
an asset, being the primary means of payment. It is interesting to observe that banks hold more
        

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