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I did include a graph of production in "coins worth per month" for those who would like to try to stabilize NGDP.
by BenoitEssiambre 4y ago
I did include a graph of production in "coins worth per month" for those who would like to try to stabilize NGDP.
- eru 4y agoThanks! The game moved way too fast for me, perhaps I did something wrong. Is there a way to make it turn-based and only advance when you tell it to? Btw, the 'magic' of a nominal gdp level target isn't just in the stable gdp itself, but in announcing a target, so that economic actors can profit by anticipating the actions of the central bank. And that anticipation itself stabilises the economy already. See https://en.wikipedia.org/wiki/Rational_expectations https://en.wikipedia.org/wiki/Rational_expectations
- BenoitEssiambre 4y agoYeah expectations are definitely a tricky part of economics and so not knowing how to model them very finely, I had to keep things simple. I tried to integrate a kind of extrapolative expectations with regards to inflation using a linear regression over a rather long period to simulate the expectations being "anchored" and "smoothed". It might be interesting to allow the expected trend to be changed by announcements and such as you suggested.