Okay, this one goes out to all the economics-smarties among you, esp. KH (i mainly say this to encourage the others ) :
So, i think i basicaly got the difference between central bank money and business bank money (M1 and M, uhem, 2 ?). I am trying to model the monetary system right now (using Power Sim Constructor light). Since debts and money have different growth rates*, i need to have seperated stocks for both (in order to be able to simulate more than one period).
Now - do i also need different stocks for ´M1-debts´and ´Mx debts´ ? Does this make sense at all ?
I´d appreciate any qualified comment - an ideally ´qualified´ includes some reference, if only like ´according to X-theory´.
Thanks a lot !
*Or - do they ? I base this assumption on the money to pay the interests due tomorrow for the money created by debts today will only be created tomorrow - so there would be at least a lag between the sums of each, money and debts, right ?
So, i think i basicaly got the difference between central bank money and business bank money (M1 and M, uhem, 2 ?). I am trying to model the monetary system right now (using Power Sim Constructor light). Since debts and money have different growth rates*, i need to have seperated stocks for both (in order to be able to simulate more than one period).
Now - do i also need different stocks for ´M1-debts´and ´Mx debts´ ? Does this make sense at all ?
I´d appreciate any qualified comment - an ideally ´qualified´ includes some reference, if only like ´according to X-theory´.
Thanks a lot !
*Or - do they ? I base this assumption on the money to pay the interests due tomorrow for the money created by debts today will only be created tomorrow - so there would be at least a lag between the sums of each, money and debts, right ?
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