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Showing posts with label Austerity. Show all posts
Showing posts with label Austerity. Show all posts

Wednesday, April 5, 2017

A SFC Model Of Gold Standard Austerity Policies

Chart: Simulated Gold Cover Ratio
This article describes the model that I discussed in an earlier video (video link: https://youtu.be/Sx6YkT75ehg). Although a Gold Standard is not exactly a pressing topic for most of us, the simplicity of the system makes it easy to demonstrate ways in which we can use stock-flow consistent (SFC) models. In this case, I can explain why austerity was a core component of gold standard thinking.