This model shows the operation of a simple economy. It demonstrates the effect of changes in the fractional rate of consumption (or the converse, the fractional rate of saving.) It also, unlike Models 2 & 3, shows the influence Savings has on the production rate.

In summary, lower rates of consumption (based on production) result in higher rates of both production and consumption in the long-run.

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.Nj+1 = Nj  + mu (1- Nj / Nmax ) Nj

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.

A simple implementation of a Dynamic ISLM model as proposed by Blanchard (1981), and taken from An introduction to economic Dynamics - Shone (1997) - chapter 5. This model might serve as a framework to evaluate economic policies over GDP growth.

Simulation of MTBF with controls


The inverse curve is the trust time
On the right the increase in failures brings its inverse which is loss of trust and move into suspicion and lack of confidence.
This can be seen in strategic social applications with those who put economy before providing the priorities of the basic living infrastructures for all.

This applies to policies and strategic decisions as well as physical equipment.
A) Equipment wears out through friction and preventive maintenance can increase the useful lifetime, 
B) Policies/working practices/guidelines have to be updated to reflect changes in the external environment and eventually be replaced when for instance a population rises too large (constitutional changes are required to keep pace with evolution, e.g. the concepts of the ancient Greeks, 3000 years ago, who based their thoughts on a small population cannot be applied in 2013 except where populations can be contained into productive working communities with balanced profit and loss centers to ensure sustainability)

Early Life
Useful Life

Wearout

This is part of series of model implemented from "Thinking in Systems" book by Donella Meadows

Irving Fisher's Debt Deflation Theory from Michael Joffe Fig. 3.4 p54 Ch3 Feedback Economics Book with Private Credit Inflation boom added to the  bust cycles

From Political Compass website showing political economic spectrum of Australian political parties contesting Federal elections in 2007-2022

Clone of Wagdy Samir Macroeconomics work in progress IM-901 Additions and deletions based on Robert Skidelsky's description of Keynes general THeory from his Biography Vol2 p 549 -571

Graph representation of Ch3 of their 2007 Monetary Economics book, based on Alvarez and Ehnts 2015 paper The roads not taken. Also see more complex WIP to successively split sectors at IM-185550 . See also essence of MMT IM for simpler intro

Based on the Market and Price simulation model in System Zoo 3.

WIP  based on Where profits come from paper , Nathan Tankus blog and other historical sources

Unfortunately, this model only produces the illusion of functioning, but I did manage to get it to give me the graph. However, because of the use of flows, if you change the time step to and the simulation length to anything other than the same numbers, you'll find the graph showing something that looks more exponential. This is due to the function referencing itself in regards to time, so inevitably each time consumption grows it changes the outcome on the other side of the equation. Still, this is a convincing mock up. I added a "45 degree" line so that one could conceivably see (and also change) the difference made by altering the level of autonomous consumption.

IM-168155 Summary of Ch 27 of Mitchell Wray and Watts Textbook see IM-164967 for book overview with simplified Mike Radzicki's 2003 Evolutionary Economics history article added

Spending by the government creates its own 'financial resource' as the process of crediting an account in the private sector takes place. This may sound like nonsense, but in fact it is 'monetary reality'. This premise is supported by Bell (1998; 2000) and Wray (1998a) who argue that the Treasury does not need to collect or borrow funds in order to spend, but crates new funds as it spends.

Perhaps the following thought experiment  helps to understand how this is possible.  

If you imagine two drawers, each representing an account. The first drawer contains 100 gold coins and the second is empty. Also imagine that there are no other gold coins available at this time. Let's call the first drawer account A and the second account B. Now if you want to transfer 30 gold coins from account A to account B, you would actually first have to take the coins out of drawer A and then place them into drawer B. Account A will then necessarily have 30 coins less in it. Now imagine accounts A and B are held in a computer as electronic money. Instead of 100 gold coins, account A only contains the computer generated number '100'  and account B shows '0'. To get account B to show a balance of '30', it would now simple be necessary to change the '0' to '30' on the computer. The need to raid account A and to take '30' from the number '100' before you could credit  account B does not exist. Money is created as it is entered in B's account irrespective of whether A's account is debited before or after this process or not at

WIP based on Bill mitchell's blogs. 

There is an old saying that says that 'opportunity makes thieves'.  But there is  also a research paper entitled 'Opportunity makes the Thief: Practical Theory of Crime Prevention (1998)' that provides evidence supporting this common observation. The paper argues that  opportunity is a “root cause” of crime. This therefore also applies to the behaviour of corporations.

 

The Causal Loop Diagram on the left indicates that the number of crimes will  increase rapidly as the opportunities to commit them increases.  This suggests that the introduction of a negative feedback loop aimed at diminishing  opportunities for committing crimes is an appropriate measure to improve the situation. A number of remedial mesures  tailored to specific situations are contained in the report. A generally effective means must be the use of law and regulations that were also mentioned in the report.

An initial study of the economics of single use coffee pods.

WIP Overview model structures of Khalid Saeed's 2014 WPI paper Jay Forrester’s Disruptive Models of Economic Behavior  See also General SD and Macroeconomics CLDs IM-168865

Regulation of resource allocation to service in response to service quality. A non-price-mediated resource allocation system. From Sterman JD Business Dynamics p172 Fig 5-27

An attempt to combine ideas from Joe Stiglitz's Book The Price of Inequality, Peter Turchin's book Secular Cycles and Khalil Saeed and Oleg Pavlov's Dynastic Cycles SD model paper

Implementation of a DSGE Model solved in a Macroeconomics class by Harald Uhlig (link), using Rational Expectations, in this case, the Hansens Real Business Cycle Model.

WIP Comparing Univeral Basic Income Guarantee with the Job Guarantee based on comparison articles

Wagdy Samir work in progress. Addition of Bill Mitchell's draft textbook chapter1  See also The value of everything book IM