Paul Krugman sometimes introduces his more complicated posts on his blog as being “wonkish”. This post is wonkish in spades–though in the linked papers rather than the content here.
I’ve just finished the first reasonable description of my multi-sectoral monetary model of production, which I’ll be presenting at the Paul Woolley Centre for Capital Market Dysfunctionality conference later this month.
There’s lots more to add before the model is complete, but this is a working first draft. Later additions will include a tendency to equalise profit rates across sectors and fixed capital, as well as fiat money creation in addition to pure credit money as in this model.
Click here for the paper, and here for the associated Mathcad file in which the modelling is done. For the latter especially, right click and download otherwise you’ll simply get a page of XML in your browser.