3 ms·
That's the way that it's meant, I agree. They might have worded that a bit differently, like saying "We assume a simplified economic system that has constant m
by febeling 8y ago
That's the way that it's meant, I agree.
They might have worded that a bit differently, like saying "We assume a simplified economic system that has constant money". Because "closed economic systems" with this meaning don't exist in real life.
- boomboomsubban 8y agoThe first sentence of the abstract which you quoted defines what a closed system would be in economics. Closed systems are a common concept, and expecting someone to read more than one sentence to find out their methodology is reasonable.
- Const-me 8y agoClosed systems don't exist in reality either. You can try to shield from radiation including cosmic microwave background but you can't from gravity. Research on closed systems is often directly applicable and therefore interesting. In some cases the externalities are sufficiently small, in others they're fast and the systems is essentially closed between them happening.