About tenjinMacro

Monetary System

Advanced sovereign money economies are a fusion of evolving monetary circuits. This project will develop the very simplest monetary circuit; a government, non government sectoral economic system of stocks and flows defined by key policy variables and the behaviour of agents.

Premise

Monetary economies have a velocity and acceleration. Private sector circuits expand and contract the money supply - with consequent booms and busts that result. To model private sector credit creation has value for theorising the consequences of monetary circuit evolution. A monetary system of credit driven financial markets is nothing more than a directed global network of financial unit balance sheets. Yet, however valuable monetary circuit evolution theorising is - and it is - real world cross-border private sector financial units and their activities will not be modelled for any other reasonable purpose. Simply, there can be no model of a system in which the rules of the game (financial sector innovation) change while the game is underway. To labour the metaphor, balance sheets remain concealed until one game ends and another starts - and no-one knows exactly when that will be.

An Often Misinterpreted Clue

Government sector (high-powered) money, specifically, the supply, velocity and distribution of net financial asset creation is determinant in stabilising financial sector chain-of-payment dynamics.

Objective

To build realistic and useful stock-flow consistent computational (agent-based) monetary system teaching models.

Models must be able to:

  • Integrate real world economic time-series aggregates.
  • Display path dependence, in that exogenous variables become endogenous variables.

Framework misunderstanding and agent-based model errors are my responsibility alone.

Use of tenjinMacro

Output is context for policy and placements. Output is not investment advice. Read the disclaimer.

To contact the developer, please visit melondata.com