Computational (agent-based) models

Agent-Based Monetary Models

Interest in a Modern Money System

Model Inference

Government expenditure, specifically, the velocity of net financial assets that flow from government to non-government sector - as a percentage of GDP - determines yield rate dynamics.

Potted History

The development of a monetary system in a specific unit of account is one mode of directing resources towards the centre - to mark contributions from people before they are due and give out uniform receipts, tokens, in return.

Historically, system design may blend, with challenges, the ideologies of nominalism and metallism. Money in this context was always a compound of value with a count. Arbitrage opportunities destabilised money supply patterns, principally, when nominal face value diverged from bullion content. Although never simply metallism, bullion content mattered greatly. Supply shortages bedevilled both medieval and early modern commodity monetary systems. Modern money is a unit of account.

Model System Balance

Modern money, its payments and collections, is an ongoing politically engineered project.

  1. [Create Demand] Obligate taxation payments in the state currency instrument.
  2. [Monopoly Supply] Advance policies: Distribute widely, tax marginally in the state currency instrument.
  3. [State Agents] the currency-issuing agents.

Currency Issuing Agents

Government desires naturally reflect the maturity and reach of a currency zone. Outcomes driven by issuing agents, however, may or may not correlate with desired government policies over time.