…the model in comments here.) I won’t try to summarize his modeling or poke holes — go look at it. I’ll just give you a picture and a few post…

…a circular flow model. In that model, investment is increased, as is the intention with expansionary monetary policy. Real GDP grows at a certain rate to a certain equilibrium level…

In the circular flow model that I use, as imports rise so does gross saving. And does that increased saving show up in increased investment? How would imports lead to…

…I would say its empricial success is vastly greater than the empirical success of any micro founded macro model..I note that my model is much more naive than the paleo-Keynesian…

…model if there is downward nominal rigidity. The economy can be in a liquidity trap. It can shift from a normal state with a positive interest rate to a liquidity…

…years ago, if they had this model. As it is, economists have no model for effective demand. They will blame the stunted potential GDP on the recession itself, and not…

Been busy building a model to show the Fisher Effect. The model uses System Dynamics, which takes interrelated variables through a time simulation. The model is described in the video…

                    Jen Sorensen…

…inflation as many say. Nick Rowe complements the model with a simpler “model”. And Steve Williamson has been an ever-present force for the Fisher Effect. I too have written about…

…understand interest rates and investment. The IS curve has its own model before it is incorporated into the IS-LM model. In that IS model, investment is a function of GDP…