Portfolio & Policy Outcomes: The Affect of a Mutable Monetary Circuit

Information about the real economy is disappearing. Forecasting the affect the modern monetary system may have on policy and portfolio outcomes requires the creation of stock-flow consistent monetary circuit models that encompass both real and financial sides of the economy.

The Economic System is Complex

A system is typically defined to be complex if it exhibits the following two properties:


Objective: To create increasingly realistic stock-flow consistent monetary models from which to simulate the aggregate behaviours of an economic system. Models include, but are not limited to, households, firms, government and finance sectors. Real-world completeness demands models integrate central bank, banking sector and non-bank (shadow) financial institutions. Our world is non-ergodic; historic time matters. With this realisation may we begin to explain changes in physical assets and financial wealth.