Remember Bob, the saver in Orderlyland who caused the economy to slow down? Let’s suppose he moves to Dynamicland, excited by the prospect of the…
Tag: models
We saw last week that to complete our model of Dynamicland we need to have a way for the money supply to increase to keep…
In the last 2 weeks we’ve seen that to have an economy with increasing productivity we need investment (which we’ve defined in economic terms) and…
Last week we added productivity to our model, and discovered that this requires investment, and that investment requires credit. So this week we’re examining credit…
Last week I used a model of a very simple economy – cash only, no innovation, nothing ever changing – so that we could see…
Last week I compared the economy to an engine, and gave you an overview of a few components particularly relevant to the question of how…
If we want to produce enough for everyone, we need to invest in that productivity, and therefore we want our savings (i.e. our pensions) to be channelled to productive investment.