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It would be interesting to simulate Free banking vs Central banks and the effect of different interest rates.
by acd 13y ago
It would be interesting to simulate Free banking vs Central banks and the effect of different interest rates.
- gjm11 13y agoThat would involve a much, much, much more complicated simulation than the one Peter Norvig is writing about.
- nhaehnle 13y agoYes it would, though that kind of modelling is some orders of magnitude outside of the scope of the toy model in the article.
- Fede_V 13y agoThis is way to simple a model for that - it's a very nice toy model, which is useful to get a quick intuition, but you cannot just add pieces to it and hope to get meaningful results.
- hbags 13y agoSuch a simulation would reveal a lot about the creator's beliefs, and essentially nothing about reality.
- aet 13y agoYou may find this interesting: http://www2.econ.iastate.edu/tesfatsi/WhyEconomistsShunSimulation.Lehtinen2008.pdf http://www2.econ.iastate.edu/tesfatsi/WhyEconomistsShunSimul...
- yummyfajitas 13y agoMaking the creator's beliefs (including hidden assumptions) completely clear is valuable all by itself. But in addition to revealing the creator's beliefs it also reveals arithmetic errors, which are quite common in poorly specified verbal models. For an example of the latter, observe this HN thread: https://news.ycombinator.com/item?id=7042469 https://news.ycombinator.com/item?id=7042469
- scarmig 13y agoI'm surprised you didn't include a link to this thread, where I still owe you some work... https://news.ycombinator.com/item?id=6725096 https://news.ycombinator.com/item?id=6725096
- yummyfajitas 13y agoYeah, but that's a discussion I didn't want to get into again. A simple, completely indisputable arithmetic error made the point better.
- arethuza 13y agoThat's all any model used to construct a predictive simulation can do.
- deong 13y agoA colleague of mine is working on simulating the banking system according to the real Basel regulatory framework rules. http://www.iiim.is/2012/10/threadneedle/ http://www.iiim.is/2012/10/threadneedle/