Most members of the public would be stunned to learn that the models economists use to manage the macro-economy ignore money and assume the economy is stable. Surely “money makes the world go round,” and the economy is inherently turbulent? Here the public is right, and Neoclassical economists are wrong. The software program, called “Minsky,” developed by this project will be given away freely to economic students and made available to professional economists so that, ultimately, economists will as a matter of course build models that capture the true dynamic, monetary nature of the economy.
Extending Macroeconomics and Developing a Dynamic Monetary Simulation Tool