Macroeconomics Models

These models and simulations have been tagged “Macroeconomics”.

Related tagsEconomicsMMTKeenMitchell

 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.

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.

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

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

Circular equations WIP for Runy.    Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. 
Circular equations WIP for Runy.

Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. 
  Goodwin Model:   This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013),  Money and Macroeconomic Dynamics , Chapter 4.5 ( link )     Equilibrium conditions:   Labor Supply  = 100  Devation from the equilibrium conditions generates growth cycles.
Goodwin Model:
This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013), Money and Macroeconomic Dynamics, Chapter 4.5 (link)

Equilibrium conditions:
  • Labor Supply = 100
Devation from the equilibrium conditions generates growth cycles.
WIP Based on Steve Keen's Inaugural Kingston Lecture Youtube  video  slides models and data all at his  blog
WIP Based on Steve Keen's Inaugural Kingston Lecture Youtube video slides models and data all at his blog
 CLD exposition of Goodwin01 from Steve Keen's August 2019 course on Introduction to Economic Dynamics and Minsky software See  video and powerpoint slides . Based on  IM-2011  Minsky FIH and  IM-168865  MacroEconomics CLDs. See IM-172005 for Simulation

CLD exposition of Goodwin01 from Steve Keen's August 2019 course on Introduction to Economic Dynamics and Minsky software See video and powerpoint slides. Based on IM-2011 Minsky FIH and IM-168865 MacroEconomics CLDs. SeeIM-172005 for Simulation

 WIP of Rammelt's 2019 System Dynamics Review  Article  which has STELLA and Minsky software versions as supplements. Compare with the  older IM-2011  version

WIP of Rammelt's 2019 System Dynamics Review Article which has STELLA and Minsky software versions as supplements. Compare with the older IM-2011 version

This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand. @ LinkedIn ,  Twitter ,  YouTube
This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.
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 l
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.
WIP based on Bill mitchell's blogs.  Sectoral balances are relationships among money flows during an accounting period. Where we perceive accumulations of past imbalances to be accrued is another matter....
WIP based on Bill mitchell's blogs. 
Sectoral balances are relationships among money flows during an accounting period. Where we perceive accumulations of past imbalances to be accrued is another matter....
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
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
  This model
shows the basic functioning and dynamics of a 'modern monetary system'.  The non-government
sectors, consisting of the private and foreign sectors initial y starts with
zero currency units. It is important to realize that  after creating a new currency the government
must first spend cu

This model shows the basic functioning and dynamics of a 'modern monetary system'.

The non-government sectors, consisting of the private and foreign sectors initial y starts with zero currency units. It is important to realize that  after creating a new currency the government must first spend currency units into the economy before they can be used: without currency units the private sector could not even pay taxes! A government that has its own freely floating currency can create a much money as it wants. It does not need tax receipts to finance its spending, and any money it spends into the economy above that collected in taxes represents income for the private sector. The model show that the government initially created 9 trillion money units, but spent only six trillion into the economy. The six trillion showed up as a government deficit, but also as wealth in the non-government sector.

Since the government can create as many money units as it wishes and transfer  them  to the private sector  to ensure an adequate level of demand in the in the economy,  austerity is unnecessary: money is available, though real resource may be scarce. This also shows that the government can contribute actively towards the creation of prosperity. 

Please note that this model was originally created by Gene Bellinger, IM 3206, from which this version was  cloned.


WIP replication of Khalid Saeed's draft paper presented by the Economics chapter of the SD Society in Sept 2019  youtube video
WIP replication of Khalid Saeed's draft paper presented by the Economics chapter of the SD Society in Sept 2019 youtube video
Circular equations WIP for Runy.    Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. Older version cloned at  IM-46280
Circular equations WIP for Runy.

Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. Older version cloned at IM-46280
Summary of Ch 11 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Summary of Ch 11 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
4 8 months ago
WIP SD representation of Steve Keen's MMT Minsky Model of an MMT fiat credit economy August 2020 patreon
WIP SD representation of Steve Keen's MMT Minsky Model of an MMT fiat credit economy August 2020 patreon