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ECONOMIC CIRCULAR FLOWS

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Current work

More features will be added to the ECF program, like dynamic components.

Future modeling

The following features can be studied:

• Financial sector.
• Better description of abroad with exchange rates, savings/borrowings and interest rates in foreign currency, currency reserves.
• Division of the public sector into state, communes and social security.
• Stock market.
• Pensions savings.
• Dependence of investments on capital stock, volume of production etc.
• Central bank with money-issuing and loans to commercial banks.

Statistics has to be collected for these model extensions.

When this is done, the most important markets (capital, currency, stocks) are covered. Then it's time to compare with other economic models. The Swedish National Institute of Economic Research (Konjunkturinstitutet) has its model KOSMOS and the Danish Danmarks Statistik has the model ADAM.

Part 2, Dynamic Systems will have essentially the same sectors as the static systems.

This is a coarse model, it can be refined with:

• Introduction of different kinds of goods and services (Agriculture, Industry, Construction, Services, Raw materials, Energy).
• Demand models.
• More categories of employees (different education, branches).
• Different kinds of public production (health care, education, transport and energy).
• Competition between different companies in the same branch, import competition.
• Relocation of companies to foreign countries.
• Private production of health care, education, transport and energy.

Still more statistics is needed for these model extensions.

Specific problems for further investigation are found appended to my suggestion for thesis work.

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