Effects of 'conservative' policy-makers and 'liberal' executives in a simplified model of the national economy

摘要

A highly-simplified model of the national economy is taken from available literature. Modifications are made to the model to account for differences in political and economic attitudes between the executive branch and the financial policy makers. The basic model form is that of a feedback system in which the measured national income is compared with a desired level to obtain a perceived "error" in national income. An executive branch is assumed with a "highly sensitive" or "liberal" reaction to perceived error in national income. A highly "conservative" reaction to perceived error in income is attributed to the financial policy makers and is accounted for in the closed-loop system by a nonlinearity denoted as deadzone in control system theory. The model of the feedback system is studied by varying parameters in a computer simulation using MATLAB software.