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simulation models on RunTheModel.com

Phillips Machine

This is a simplified system dynamics simulator of the famous hydraulic macroeconomic
model (and analogue computer), the Phillips Machine (a.k.a. MONIAC - Monetary National
Income Analogue Computer).

The basic macroeconomic relationship, GDY (Y) = C + G + I +(X-M) is demonstrated.

The user has a control panel allowing control of the model's parameters, including:
autonomous government spending;
the tax rate;
the average propensity to consume (APC);
the investment rate (from 'IdleBalances');
the average propensity to import (APIm); and
the autonomous level of exports.

The dynamics of this simple economy can be examined.

In the spirit of the original Phillips Machine, this is primarily a teaching device.
Although stylised and simplified, the key concept of the necessary equalisation of
Sectoral Financial Balances is clear to see.

The model was created with AnyLogic - simulation software / Economic and Financial Dynamic