Epstein Secrets

s 3.4 Commodity models Background Modelling Results Discussion - Background - Modelling - Results - Discussion 4. Minsky goes Austrian a la Goodwin — Macroeconomic Models 4.1 Macroeconomic Models - Background 4.2 Macroeconomic Models - Modelling 4.3 Macroeconomic Models - Results 4.4 Macroeco

o produce a simple Lotka-Volterra macroeconomic model. This basic model generates endogenous boom and bust business cycles of the sort described by Minsky and Austrian economists. From this model an exact formula for the Bowley ratio; the ratio of returns to labour to total returns, is derived. This f

cs, and chaotic systems in general, is discussed in section 6 below. As discussed above, Lotka-Volterra models have been used in Marxian analysis by Goodwin and others, though the models can be somewhat complex. The models presented above seem more efficacious than the Goodwin type Lotka-Volterra model

al unproductive. This then generates a downswing of declining wealth, consumption and wages. This is the normal cycle of capitalism as described by Minsky and the Austrians. Booms and busts are endogenous. Free markets are not inherently stable. Again, as with the income and company models it noticeab

naturally from the companies model. During the modelling process I was rereading Steve Keen's 'Debunking Economics' and had also read some of the Goodwin modelling work while investigating the ratio of returns to labour and capital. It seemed to me that by combining the wealth, company and commodity m

ge payments to rents. The macroeconomic models in section 4 above suggest that liquidity can be formed endogenously, in exactly the way proposed by Minsky. This suggests that, just as central banks are expected to control changes in the money supply caused by fractional reserve banking, it seems appro