Arrows show causality
An arrow points from an input to the variable or sector it directly affects.
Monetary Economics · Wynne Godley + Marc Lavoie
The economy,
with no loose ends.
Follow every payment, stock and feedback loop through the first eleven chapters of the stock-flow consistent framework.
Flow
Stock
Sector
Exogenous
Run the system
A small experiment
MODEL OUTPUT
READING THE MAP
Loops are the point
Income creates spending; spending creates income. The model solves the loop together.
Stocks remember
Last period’s money and wealth carry the system’s history into the next period.