Last update: 07/2009
Michael Jeschke

Simulation of an Economy - Impact of Interest to the Financial System

To understand the effect of Interest to an economy, one can carry out a simple computer simulation. The simulated economy is composed of:

The economy is further characterised by For simplicity, the simulation was written in Matlab/Octave m-code. For further details please refer to the documentation in the source code (english) or to the two documents referenced below (german).


  Matlab/Octave Script for simulation of an economy, by Michael Jeschke, based on Prof. Jürgen Kremer
  The suitable document (german): "Eine andere unsichtbare Hand des Marktes - von den blinden Flecken der Volkswirtschaftslehre" (Prof. Jürgen Kremer)
  The suitable presentation (german): "Eine andere unsichtbare Hand des Marktes" (Prof. Jürgen Kremer)
  Another interesting presentation (not directly related) (german): "Geldschöpfung - einfach erklärt"

Example of an output of the above Matlab-Script: