Macroeconomics Models

These models and simulations have been tagged “Macroeconomics”.

Related tagsEconomicsMMTMitchellKeen

 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

 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.

Causal loop representation of Keynesian macroeconomics taken from the System Dynamics literature, specifically Henize 1972 MIT D-memo D-1717. See also Nathan Forrester's SF CLD Diagram from his PhD  IM-165714
Causal loop representation of Keynesian macroeconomics taken from the System Dynamics literature, specifically Henize 1972 MIT D-memo D-1717. See also Nathan Forrester's SF CLD Diagram from his PhD IM-165714
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
Summary of Pavlina Tcherneva's 2019 Challenge  article  (paywalled)  added to  IM-173064  Ch 19 Full employment policy of Macroeconomics textbook
Summary of Pavlina Tcherneva's 2019 Challenge article (paywalled)  added to IM-173064 Ch 19 Full employment policy of Macroeconomics textbook
  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.


Summary of Part B Ch 9 and 10 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Summary of Part B Ch 9 and 10 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
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....
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.
Summary of Ch 19 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Summary of Ch 19 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
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
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
  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 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  based on Where profits come from  paper  , Nathan Tankus  blog  and other historical sources
WIP  based on Where profits come from paper , Nathan Tankus blog and other historical sources
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see  IM-164967  for overview.  IM-165415  Example converted to a continuous time dynamic model using stocks and flows
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see IM-164967 for overview. IM-165415 Example converted to a continuous time dynamic model using stocks and flows
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. 
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see  IM-164967  for overview. See  IM-165546  for a conversion to a continuous time stock flow version of this simple example
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see IM-164967 for overview. See IM-165546 for a conversion to a continuous time stock flow version of this simple example
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. It shows the capacity of implementing Dynamic Stochastic General Equilibrium Model Analysis using System Dynamics.
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.
It shows the capacity of implementing Dynamic Stochastic General Equilibrium Model Analysis using System Dynamics.
Summary of Ch1 of Mitchell Wray and Watts Textbook see  IM-164967  for overview
Summary of Ch1 of Mitchell Wray and Watts Textbook see IM-164967 for overview