On Component Based Modeling Approach using System Dynamics for The Financial System (With a Case Study of Keen-Minsky Model)

摘要

The methodology presented will take the modeling to higher level and scale. By using hierarchical component based modeling approach, the model result would be easy to understand and to communicate. We are now able to reconstruct the Keen-Minsky monetary model using system dynamics approach without difficulty. It is because ordinary differential equations and network accounting model can easily be translated into system dynamics form. The resulting model consists of two main blocks, the real sector and the financial sector. The smallest component is exponential growth module in the family of first order system. The price module is created from first order system component. The nonlinear function is encapsulated as a module. The purpose in this modeling is not emphasized on prediction, but more on getting insight by forming an accurate model of the economy's behavior.