Simulating Hyperinflation for 3650 days.  If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings.  We don't show the details of the central bank buying bonds here,
Simulating Hyperinflation for 3650 days.

If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings.  We don't show the details of the central bank buying bonds here, just the net results.

See blog at http://howfiatdies.blogspot.com for more on hyperinflation, including a hyperinflation FAQ.
 This Model was developed from the SEIR model (Susceptible, Enposed, Infected, Recovered). It was designed to explore relationships between the government policies regarding the COVID-19 and its impact upon the economy as well as well-being of residents.    Assumptions:   Government policies will be

This Model was developed from the SEIR model (Susceptible, Enposed, Infected, Recovered). It was designed to explore relationships between the government policies regarding the COVID-19 and its impact upon the economy as well as well-being of residents. 

Assumptions:

Government policies will be triggered when reported COVID-19 case are 10 or less;


Government Policies affect the economy and the COV-19 infection negatively at the same time;


Government Policies can be divided as 4 categories, which are Social Distancing, Business Restrictions, Lock Down, Travel Ban, and Hygiene Level, and they represented strength of different aspects;

 

Parameters:

Policies like Social Distancing, Business Restrictions, Lock Down, Travel Ban all have different weights and caps, and they add up to 1 in total;

 

There are 4 cases on March 9th; 

Ro= 5.7  Ro is the reproduction number, here it means one person with COVID-19 can potentially transmit the coronavirus to 5 to 6 people;


Interesting Insights:

Economy will grow at the beginning few weeks then becoming stagnant for a very long time;

Exposed people are significant, which requires early policies intervention such as social distancing.

This is Figure 6 from Lancastle, N. (2012) 'Circuit Theory Extended: The Role of Speculation in Crises' based on Keen, S. (2010). Solving the Paradox of Monetary Profits.   http://www.economics-ejournal.org/economics/journalarticles/2012-34      Banks expand their lending, which in this model leads
This is Figure 6 from Lancastle, N. (2012) 'Circuit Theory Extended: The Role of Speculation in Crises' based on Keen, S. (2010). Solving the Paradox of Monetary Profits.

http://www.economics-ejournal.org/economics/journalarticles/2012-34

Banks expand their lending, which in this model leads to higher production, wages and spending. The result is an increase in total spending.  
 This model is based on the article Dynamic modeling of Infectious Diseases, An application to Economic Evaluation of Influenza Vaccination Farmacoeconomics 2008, 26(1): 45-56 .  And EBOLA

This model is based on the article Dynamic modeling of Infectious Diseases, An application to Economic Evaluation of Influenza Vaccination Farmacoeconomics 2008, 26(1): 45-56 .

And EBOLA


Based on Nate Osgood's April 2014 Singapore Presentation  Youtube video  and Lyle Wallis material Gojii at  DecisioTech  See also  Complex Decison Technologies IM  as a more polished version
Based on Nate Osgood's April 2014 Singapore Presentation Youtube video and Lyle Wallis material Gojii at DecisioTech See also Complex Decison Technologies IM as a more polished version
Overview of Part E Ch 20 to 24 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Overview of Part E Ch 20 to 24 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
In a Dasgupta review lecture I heard 'welfare is stock, therefore it cannot be measured by GDP, since GDP is a flow'. This fascinated me. Therefore I am trying to make a stock-flow diagram of this.
In a Dasgupta review lecture I heard 'welfare is stock, therefore it cannot be measured by GDP, since GDP is a flow'. This fascinated me. Therefore I am trying to make a stock-flow diagram of this.
From Schluter et al 2017  article  A framework for mapping and comparing behavioural theories in models of social-ecological systems COMSeS2017  video .   See also Balke and Gilbert 2014 JASSS  article  How do agents make decisions? (recommended by Kurt Kreuger U of S)
From Schluter et al 2017 article A framework for mapping and comparing behavioural theories in models of social-ecological systems COMSeS2017 video. See also Balke and Gilbert 2014 JASSS article How do agents make decisions? (recommended by Kurt Kreuger U of S)
9 5 months ago
Clone of Pesticide Use in Central America for Lab work        This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.     The cotto
Clone of Pesticide Use in Central America for Lab work


This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.

The cotton industry expanded dramatically in Central America after WW2, increasing from 20,000 hectares to 463,000 in the late 1970s. This expansion was accompanied by a huge increase in industrial pesticide application which would eventually become the downfall of the industry.

The primary pest for cotton production, bol weevil, became increasingly resistant to chemical pesticides as they were applied each year. The application of pesticides also caused new pests to appear, such as leafworms, cotton aphids and whitefly, which in turn further fuelled increased application of pesticides. 

The treadmill resulted in massive increases in pesticide applications: in the early years they were only applied a few times per season, but this application rose to up to 40 applications per season by the 1970s; accounting for over 50% of the costs of production in some regions. 

The skyrocketing costs associated with increasing pesticide use were one of the key factors that led to the dramatic decline of the cotton industry in Central America: decreasing from its peak in the 1970s to less than 100,000 hectares in the 1990s. “In its wake, economic ruin and environmental devastation were left” as once thriving towns became ghost towns, and once fertile soils were wasted, eroded and abandoned (Lappe, 1998). 

Sources: Douglas L. Murray (1994), Cultivating Crisis: The Human Cost of Pesticides in Latin America, pp35-41; Francis Moore Lappe et al (1998), World Hunger: 12 Myths, 2nd Edition, pp54-55.

From Jay Forrester 1988 killian lectures youtube  video  describing system dynamics at MIT. For more detailed biography See Jay Forrester memorial  webpage  For MIT HIstory see  IM-184930  For Applications se  IM-185462
From Jay Forrester 1988 killian lectures youtube video describing system dynamics at MIT. For more detailed biography See Jay Forrester memorial webpage For MIT HIstory see IM-184930 For Applications se IM-185462
The simulation integrates or sums (INTEG) the Nj population, with a change of Delta N in each generation, starting with an initial value of 5. The equation for DeltaN is a version of  Nj+1 = Nj  + mu (1- Nj / Nmax ) Nj  the maximum population is set to be one million, and the growth rate constant mu
The simulation integrates or sums (INTEG) the Nj population, with a change of Delta N in each generation, starting with an initial value of 5.
The equation for DeltaN is a version of 
Nj+1 = Nj  + mu (1- Nj / Nmax ) Nj
the maximum population is set to be one million, and the growth rate constant mu = 3.
 
Nj: is the “number of items” in our current generation.

Delta Nj: is the “change in number of items” as we go from the present generation into the next generation. This is just the number of items born minus the number of items who have died.

mu: is the growth or birth rate parameter, similar to that in the exponential growth and decay model. However, as we extend our model it will no longer be the actual growth rate, but rather just a constant that tends to control the actual growth rate without being directly proportional to it.

F(Nj) = mu(1‐Nj/Nmax): is our model for the effective “growth rate”, a rate that decreases as the number of items approaches the maximum allowed by external factors such as food supply, disease or predation. (You can think of mu as the growth or birth rate in the absence of population pressure from other items.) We write this rate as F(Nj), which is a mathematical way of saying F is affected by the number of items, i.e., “F is a function of Nj”. It combines both growth and all the various environmental constraints on growth into a single function. This is a good approach to modeling; start with something that works (exponential growth) and then modify it incrementally, while still incorporating the working model.

Nj+1 = Nj + Delta Nj : This is a mathematical way to say, “The new number of items equals the old number of items plus the change in number of items”.

Nj/Nmax: is what fraction a population has reached of the maximum "carrying capacity" allowed by the external environment. We use this fraction to change the overall growth rate of the population. In the real world, as well as in our model, it is possible for a population to be greater than the maximum population (which is usually an average of many years), at least for a short period of time. This means that we can expect fluctuations in which Nj/Nmax is greater than 1.

This equation is a form of what is known as the logistic map or equation. It is a map because it "maps'' the population in one year into the population of the next year. It is "logistic'' in the military sense of supplying a population with its needs. It a nonlinear equation because it contains a term proportional to Nj^2 and not just Nj. The logistic map equation is also an example of discrete mathematics. It is discrete because the time variable j assumes just integer values, and consequently the variables Nj+1 and Nj do not change continuously into each other, as would a function N(t). In addition to the variables Nj and j, the equation also contains the two parameters mu, the growth rate, and Nmax, the maximum population. You can think of these as "constants'' whose values are determined from external sources and remain fixed as one year of items gets mapped into the next year. However, as part of viewing the computer as a laboratory in which to experiment, and as part of the scientific process, you should vary the parameters in order to explore how the model reacts to changes in them.