Economic Simulator

Published 2000, Update 14-December-2012

The economic simulator equations

X^' = (X - aY)cos(Z) - bYsin(Z),                    X ≡ O,     the output.    Conservative/Cremona

Y^' = (X + cY)sin(Z) + dYcos(Z) ,                 Y ≡ M,    the money.    equations

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Z^' = e + fZ + garctan[(1 - u)Y / (1 - i)X]        Z ≡ P,      the pricing,   feedback equation

source: Ben Tamari (1997) Conservation and Symmetry Laws and Stabilization Programs in Economics, p. 17. 

Comparison among 26 Chosen Countries 1960 - 2011.

The test is a Roentgen like, or MRI like. The parameters (a-inertia, b-productivity, c-printing, d-adaptation,) for each country were found through regressions. The exchange (e), the unemployment (u) and the interest rates (i) are multi-annual geometrical averages and the indexation parameter (f = 0.01) and velocity of circulation/elasticity parameter (g = 1) are arbitrary and constants. Analysis and study of the variables Output, Money and Pricing (O, M, P,) and invariables (a, b, c, d , e, f, g, u, i,) of each country show its position in the Economic space (ES), see the ES and Nest figures above.

As Tolstoy would say, all health families (economies) resemble one another, but each pathological family (economy) is unhealthy in its own way.

U figure 1: The trajectories of 26 chosen countries together, data 1960 -2008 (old, 1-April-2010).

N figure 2: The trajectories of 26 chosen countries together, data 1960 -2011 (new, 20-October-2012).

U Table 1: Rates of Change (%) of Growth o, Printing m, Inflation p, Theoretical Inflation p* and Deviation d ≡ p - p*, 1960 - 2011.

Source of data: Processed by the author from data of  "International Financial Statistics, YEARBOOK 2012",  IMF.

U Table 2: The Coefficients a, b, c, d, J/E (Jacobian/Ecometer) 1960 - 2011.

Source of data: Processed by the author from data of  "International Financial Statistics, YEARBOOK 2012",  IMF.

U Table 3: The Coefficients: Exchange Rates e, Indexation f, Unemployment u, and Interest i, (%) 1960 - 2011.

Source of data: Processed by the author from data of  "International Financial Statistics, YEARBOOK 2012",  IMF.

The economic simulator Guide

The Eco2 software  - application of Tamari attractor - enables the study of the economy of a country. The function of the software is the performance of economic simulation in the economy of states: analysis, planning, prediction and comparison of the economy of states, according to the state's data as found in the International Financial Statistics (IMF) for the years 1960-2011, for 26 chosen countries.

The simulator designed for 5 purposes:

• To simulate the economy of a country, for that we need a 3 dimensional space called the Nest ( an OUTPUT-MONEY- PRICING [O, M, P,] ). The Nest includes 3  2-dimensions subspaces: Output-Money - Keynes space [O, M,]; Output-Pricing - Patinkin space [O, P,]; and Money-Pricing - Freidman space [M, P,].

• To compare the performance of economies of different countries on the same measure and data scale.

• To forecast the economy of a country.

• To investigate the possibility of the increase / decrease of the quantity of money per output.

• To practice the attractor tool, which is the engine of dynamic systems in nature.

How to Operate the Simulator

The default is Economic Simulator, based on Tamari Attractor in the Attractors menu. The first country to appears is Ecoland, an imaginary (ideal) country. After that comes a list of another 26 countries (the samples) the last one of which is the average of the all the 26 countries in the sample called World, the data taken from "International Financial Statistics, YEARBOOK 2010".

You can choose another country - on the list - for simulation and practice. You can also compare different countries by changing the setting in the accumulated countries box. The best way to start comparing trajectories among countries is to put the number 3000 in the iterations box.

If you don't recognize the attractor tool you can get an idea about it by choosing another attractor from the list on the Attractors menu. (see also www.bentamari.com/attractors ).

By changing parameters, operations, and initial conditions you will get the feeling, sensitivity, and spirit of what it is all about.

The method of eco is described in the site http://www.bentamari.com in the pages ecometry and attractors.