Neoliberal Economic Policy and Alternatives for France

This book offers a comprehensive exploration of how empirical stock-flow consistent (SFC) modelling can be used as a tool for macroeconomic analysis. Based on a coherent framework rooted in national accounting principles, SFC models, which integrate both financial and real economy variables, are well-suited for capturing financial crises, macroeconomic imbalances and economic policy impacts.

Focusing on France, the book presents the SFC FR model, an empirical SFC model based on French national data, and examines four decades of structural change of the French economy marked by financialisation, policy shifts, evolving trade and public deficits. Through detailed simulations, it assesses the effectiveness of a range of fiscal, monetary, and climate policies. Instead of supply side policy, which has been dominant, it provides insights into possible alternative economic strategies that prioritise equity and sustainability for the years 2025-2035.

Bridging the gap between empirical realism and theoretical consistency, the book is a vital resource for economists, policymakers and researchers seeking a realistic and policy-relevant approach to macroeconomic analysis especially for economic policy design and evaluation.

Luis Reyes holds a PhD in economics from the University Sorbonne Paris North, a Master’s degree from the University of Paris 1, and a Bachelor’s degree from UNAM. He is currently Associate Professor of Economics at Kedge Business School in Paris and a Visiting Professor at Aalborg University. His main research interest is in macroeconomic modelling, with active participation in the development of four empirical SFC models for France, Vietnam, Algeria and China. His doctoral dissertation analyses shifts in economic policy in France, drawing on a preliminary version of the SFC FR model used in this book.

Jacques Mazier graduated from École Polytechnique in 1968 and earned his doctorate in economics from the University of Paris 1 in 1974. During the 1970s and 1980s, he worked in the Forecasting Department of the French Ministry of Finance and at the French Planning Commission. He served as Professor of Economics at the University of Rennes (1976–1981) and subsequently at University Sorbonne Paris North (1983–2013). Since 2013, he has been Professor Emeritus at the University Sorbonne Paris North and is a member of the Chair Energy and Prosperity.

Chin Yuan Chong holds a PhD in Statistical Signal Processing from CentraleSupélec/Paris-Saclay as well as Master’s degrees in Electrical Engineering from Lund University and in Sustainable Finance from Kedge Business School. Following an initial career in defence research and development in Singapore and France, she transitioned into the field of sustainable finance. Her contribution to this book is based on her postdoctoral work at Kedge. She is currently a project manager at the French Sustainable Finance Institute.