Integration of Real and Monetary Sectors with Labor Market - SD Macroeconomic Modeling (3)

摘要

This is the third paper of a series of macroeconomic modeling that tries to model macroeconomic dynamics on the basis of the principle of accounting system dynamics developed by the author. Money supply and creation processes of deposits were modeled in the first paper, while second paper built dynamic determination processes of GDP, interest rate and price level. In this paper, these two separate models are integrated to present a complete macroeconomic dynamic model consisting of real and monetary sectors. For its completion, population dynamics and labor market is additionally included. The integrated model is aimed to be generic, out of which diverse macroeconomic behaviors are shown to emerge. Specifically equilibrium growth path, business cycles and government debt issues are discussed in this paper.