"Money is a good soldier, sir, and will on..."
Falstaff (The Merry Wives of Windsor)
Working together over the last four years, Tim Jackson and Peter Victor have begun to develop a consistent approach to an ecological macroeconomics. Our broad approach draws together three primary spheres of modelling interest and explores the interactions between them. These spheres of interest are:
In order to explore these aspects of the economy we have developed a dedicated system dynamics model of Financial Assets and Liabilities in a Stock-Flow consistent Framework (FALSTAFF). FALSTAFF contains a simplified representation of the real economy and a comprehensive (stylized) account of the financial economy. We have several specific aims for FALSTAFF:
A simplified form of the FALSTAFF model has been used to explore the hypothesis that interest-bearing money creates a ‘growth imperative’. A working paper and online model are available here.