Since the time of Adam Smith, economists have studied the dynamics of economic systems. From a system dynamics perspective, the change in any system over time occurs when flows accumulate in stocks - i.e., by the process of integration. Of course, economists have long been familiar with, and...

In this chapter, we demonstrate a way to get started with system dynamics modeling of a national economy, using a modular software framework called the MacroLab Template. The Template can be customized to reflect a modeler’s hypotheses about how an economy works. To illustrate the modeling...

Many important regularities observed in the economy are feedback processes, including stability, fluctuations, crises, lock-in/network effects and growth. Each type has its endogenous causal structure, driven by its specific incentive structure and agents' behavioural responses. The price...

In 1949, A. W. H. (Bill) Phillips and Walter Newlyn designed and built an electro-hydraulic dynamic model of the macroeconomy of a country. It was the first analog computer to solve the nonlinear coupled differential equations of mid-twentieth century economic theory and led to the use of...