Quantitative Model on Economics with degrowth

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Description

Quantitative model on economical developments

This quantitative model compares the average income and wealth of the people that earn above the average or those who lend money with those below average or those who borrow money.

It includes

• interest rates
• initial inequality
• savings quota
• money creation (the possibility of banks to lend more than they hold)
• productivity

The model allows to understand the basic developments and to try scenarios on

• degrowth, by trying a negative productivity
• re-coupling of financial and real economy by negative money creation
• use or harm of interest rates decoupled from productivity 

In order to explore some scenarios I have saved with the model got the the factor "discrepancy" and look in its full view cockpit for the parameters and the scenarios. (click on the "i", then on "Quantitative", then on "Graph", then on "Full Screen". Then click on the ">" to run a scenario.

BTW: If you want to explore a full range of possible scenarios you may change the parameters to range()-functions.

Please discuss the model. If you want the model itself and not just the link let me know: info@ilsa.de (Kai Neumann)

NOTE: the turbulences at the beginning of some scenarios are caused by the initial effect of credits as they start from scratch with 4 years until the first credits are paid back. Actually the scenarios should start with paybacks all the time. Maybe you decide to set the the running time of loans to 1

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