Thread by @JamesYo43532848

Stock–Flow Consistent Formulation of
Kalecki–Young Sectoral Inflation Decomposition (KYSID)

"Recasting KYSID within a stock–flow consistent (SFC) framework clarifies that the inflation process is a balance-sheet outcome."

Core flow-of-funds identity

Distributional block

Inflation decomposition (consistent with KYSID)

Full SFC closure condition

By embedding the KYSID decomposition within the SFC matrix, the model gains full accounting closure and compatibility with the Post-Keynesian stock–flow tradition, while retaining the analytical tractability of its ratio-based form.

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