Models

Tutorial

Steve Keen’s Minsky program, available free through Sourceforge, will be used for all of the models created here.

I’ve created a short tutorial that shows how Minsky works. If you want to create models shown on this website, this tutorial will teach you enough to follow along. It is not a complete tutorial but it does point out some pitfalls along the way.

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Keen’s Macroeconomics

This model is from Keen’s Thermodynamics 2.0 Keynote YouTube video. Neoclassical economists equate good foundations with extrapolating microeconomics and drawing macroeconomic conclusions. The problem is that there is no truly representative microeconomic system to extrapolate. The whole acts differently than its parts. This model demonstrates what happened to cause the 2008 great recession.

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GDP

This model contains some experimental attempts to include Real Assets (RA) along with the Financial Assets (FA) included with most of the models. RA represents real wealth created by an economy that produces durable goods. Consumed goods don’t contribute to long-term wealth though they can contribute to standards of living.

This model contains a rudimentary foreign sector. It also contains the interactions between the treasury and the central bank. It is labeled GDP because it explicitly calculates the components of the consumption equation for GDP: GDP = G + C + I + NX.