Professor Marcus Nadler of New York University, who was an Austrian refugee, taught a night course on financial markets, a big lecture course with almost two hundred students. (Charles) Simon enrolled. He got Rudolf Smutny to go with him, and then Billy Salomon, for a few weeks. "We wanted to know," Simon recalled, "why when Uncle Sam borrowed so much money [over time] his credit rating didn't decline. Why did rates go down [over time] rather than up?
Nadler explained that the more the government borrowed, the more money there was. This was stunning to those of us who had no background. Nadler's great ability to teach inspired those of us who had never gone to college. Smutny had no education and didn't really want an education; he went because he wanted to know why I idolized Nadler. [...] I was very privileged to have that time with the old man." (Charles Simon, circa 1950s)
Monetary System Model Development
Agent-based ModelSIM is an interpretation of Godley & Lavoie's ModelSIM. Agent-based ModelSIM will solve computationally; not as systems of equations. The model 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).
Peruse ModelSIM accounting.
The model consumes real-world historical government expenditure time-series data in order to produce system cycles over time.
Strong Money, Fair Taxes
The model consumes real-world historical and forecast expenditure time-series data in order to produce system cycles over time.
- View Model Run Exploratory.