Agent-Based Model Simple

Government Digital Currency

Agent-Based Model SIM (ABMSIM) is an interpretation of Model SIM, the simplest flow model of a , non-government monetary system described by the late, great, Wynne Godley & Marc Lavoie in their book 'Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth'.

ABMSIM solves computationally; not as a system of equations. ABMSIM must remain consistent with stock-flow accounting. Sectoral agents (best described as partially understood metaphors) are bound by monetary system flows.

Policy variables are government expenditure (a stimulus quantity) and a government mandated taxation rate (a percentage). Change in both expenditure and taxation determine the quantity of money (net financial assets) that flow towards or away from the non-government sector. This is the government sector fiscal balance, either in surplus (a money flow away from the non-government sector), or more typically, in deficit (a money flow toward the non-government sector).

The model and therefore the economy is defined by key policy variables and the behaviour agents.

ABMSIM consumes real-world government expenditure time-series data in order to produce system cycles over time.

  1. View ABMSIM accounting.
  2. View ABMSIM output.

The website illustrates model experiment tests.

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