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Stage 5
Stage 5
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Launch page for Macroeconomics Textbook 2019 by Mitchell, Wray and Watts. There is also a book companion site
Macroeconomics Textbook Overview
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AKL Ouput Model
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Economic Loop D7
7 months ago
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Verano, Mary Ann (Economic Data)
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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.

Clone of REM 221 - Causal Loop diagramming
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Lakon_Energy Economics Fossil Fuel
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Class Economics
11 months ago
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The upper diagram shows the principal factors that have an influence on the budget deficit and indicates what needs to be done to correct it. But this is not the full story. The diagram below shows that  cutting public expenditure reduces aggregate demand and  increases unemployment. The reduction of aggregate demand  reduces  economic activity which has the effect of reducing  tax revenue.  In addition, the state has to pay out funds as there is a need for more unemployment benefit payments.   The result of these austerity measures  is often the opposite of their intended purpose: they can increase rather than decrease the budget deficit.

There is plenty of empiric evidence to show that this has happened time and time again. For instance, a report from UNCTAD (United Nations Conference on Trade and Development) found that between 1990 and 2000 in all the  cases examined where cutbacks in public spending and tax increases were used, the fiscal situation did not only not improve but worsened. Despite such repeated evidence, unfortunately calls for  austerity measures continue to be heard. 

Fallacy of Spending Cuts
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This is a reconstruction of the SIMM model presented in Chapter 2 of Feedback Economics (Contemporary Systems Thinking)

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Simple Macroeconomic Model (SIMM) (CLD)
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To compete with cheap price and convenience,
Community Economy must provide the distinct merits; human connection, belief in person, unique quality enable citizens willing to pay for fair price.
Community Values Change the Spending Choice of Citizens for Economic Equity
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Capitalism is in crisis and climate change disruption is now beginning to hit the bottom line. Insurance companies know this well. According to a report by the Bank of England, insured losses have risen from $10 000 million in 1985 to $50 000 million in 2015. Climate change cannot be reversed, and extreme weather events  will undoubtedly get worse in the future strengthening the disruptive effects shown in the CLD.  Another dynamic is that companies will continue to automate and, as The Economic Policy Institute has shown, fail to reflect  productivity gains in workers' salaries. The result, stagnating salaries is disastrous for demand, given that capitalism needs endlessly rising demand and consumption. A further serious problem is that as climate change gets worse there will be increasing demands for companies to assume their responsibility and bear the costs of negative externalities.  The CLD shows these factors which are likely to lead to the collapse of the system: when capitalism can no longer generate 'capital' it has stopped to serves any useful purpose. 

DOES THIS DYNAMIC SPELL THE END OF CAPITALISM
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Socio-economic Cycle - Final Porjecy
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Very basic stock-flow diagram of simple interest with table and graph output in interest, bank account and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal, and initial balance bank account can all be modified. 
I have developed a lesson plan in which students work on both simple and compound interest across both IM and Excel. I also wrote an article about this in Dutch, which you can translate using for example Google Translate: https://kdrive.infomaniak.com/app/share/1524656/93e2021a-6fc1-4b2c-8bcd-643a607526db

Also have a look at some of my other diagrams, for example: https://insightmaker.com/insight/6hPaqcl0YETrQcWKYkXeu2
Stock-Flow diagram of savings account - simple interest
8 10 months ago
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clone economics price product
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Interactions between labour and capital
Labour and Capital
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An initial study of the economics of single use coffee pods.
TENESPRESSO
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Introduction:
This model demonstrates the COVID-19 outbreak in Burnie, Tasmania. It shows how the government policy tries to reduce the spread of COVID-19 whilst also impacting the local economy.

Assumptions:
This model has four variables that influence the number of COVID-19 cases: infection rate, immunity loss rate, recovery rate and death rate.

In order to reduce the pandemic spread, in this model, assume the government released six policies when Burnie COVID-19 cases are equal or over 10 cases. Policies are vaccination promotion, travel restriction to Burnie, quarantine, social distance, lockdown and testing rate.

Government policies would reduce the pandemic. However, it decreases economic growth at the same time. In this model, only list three variable that influence local economic activities. 
Travel restrictions and quarantine will reduce Burnie tourism and decrease the local economy. On the other hand, quarantine, social distance, lockdown allow people to stay at home, increasing E-commerce business.
As a result, policies that cause fewer COVID-19 cases also cause more considerable negative damage to the economy.

Interesting insights:
One of the interesting findings is that the government policy would reduce the COVID-19 spread significantly if I adjust the total government policies are over 20% (vaccine promotion, travel restriction, quarantine, social distance, lockdown), 3560 people will die, then no more people get COVID-19.
However, if I change the total government policy to less than 5%, the whole Burnie people will die according to the model. Therefore, we need to follow the polices, which saves our lives.
BMA708 assignment3 - Model of COVID-19 outbreak in Burnie
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Michael Marmot's Eur J Epidemiol Essay 2017 See also IM-62760  Social determinants of health from Michael Marmot's  ABC 2016 Boyer Lectures on Social Justice and the Health Gap
Social Justice, Epidemiology and Health Inequalities
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Goodwin cycle IM-2010 with debt and taxes added, modified from Steve Keen's illustration of Hyman Minsky's Financial Instability Hypothesis "stability begets instability". This can be extended by adding the Ponzi effect of borrowing for speculative investment.

Minsky Financial Instability Model
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Test 3
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Difficulties with formulae and links
Problems with formulae and links
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first draft with forked supply demand example intact
Backup of Associative Economics - The Farmer, The baker and The Bread Eaters
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Final Project Socio-Economic Model