On "Open-economy macroeconomics using models of closed systems"

International macroeconomic crises occur because of the enlargement of the dimension of the state space within which economies operate. Our focus is the recent financial turbulence worldwide in which (i) banks had a role to play and (ii) whole systems collapsed. We validate these propositions in the context of the qualitative theory of differential equations. The economic framework used is that of Wynne Godley.