Minsky is a system dynamics program with a unique feature I invented that makes it easy to model monetary dynamics. Called a “Godley Table”, this lets you model financial flows using the accountant’s tool of double-entry bookkeeping.
Modelling with Minsky
This free book is a companion to The New Economics: A Manifesto. It explains how to use Minsky, how to build all the models in that book, and how you can use Minsky to build your own models. The current version, published in October 2021, is incomplete due to pressures of other work; I will update it when time permits.
To download it, click on the “Download” link below rather than the hyperlink: the latter takes forever to load!
These are the models used in The New Economics: A Manifesto.
This ZIP file contains the files used to generate the following figures in the book:
|Fig2-1||29||Money enables the butter maker to buy a gun without the gun maker having to want butter||GoldAsMoney.mky|
|Fig2-2||32||The State as the conduit for fiat money transfers where money is the Stateâ€™s liability and physical gold its asset||GoldCertificatesAsMoneyGoldBacked.mky|
|Fig2-3||36||Modelling the initiation of a monetary economy in Minsky–Godley Tables||DesanOffaInitiationOfFiatMoney.mky|
|Fig2-4||38||Modelling the initiation of a monetary economy in Minsky–Plots||DesanOffaInitiationOfFiatMoney.mky|
|Fig2-5||41||The fundamental monetary operations of the government||ModernFiatMoney.mky|
|Fig2-10||61||The banking sector’s view of a mixed fiat-credit economy–Godley Table||SurplusCausesDepression.mky|
|Fig2-11||62||An integrated view of government deficits and private sector credit||SurplusCausesDepression.mky|
|Fig2-13||67||Accounting for a Modern Debt Jubilee||BasicModernDebtJubilee.mky|
|Fig3-2||78||A predator-prey model in Minsky, using sharks and fish||PredatorPrey.mky|
|Fig3-3||80||Lorenzâ€™s model of aperiodic cycles in the weather||Lorenz.mky|
|Fig3-4||86||The Keen-Minsky model and the ‘intermittent route to chaos’||KeenMinskyModel.mky|
|Fig4-3||108||A simple energy-based model with resource depletion and waste production||GoodwinResourceDepletion.mky|
|Fig6-1||147||Simple population growth as an integral equation in Minsky||PopulationGrowth.mky|