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QED stand for “Ques­nay Eco­nomic Dynam­ics”. It is a new soft­ware pro­gram that imple­ments my tab­u­lar method of devel­op­ing dif­fer­en­tial equations.

I am cur­rently work­ing on a sec­ond edi­tion of Debunk­ing Eco­nom­ics, and an entry on QED will form part of that book. When I have writ­ten that chap­ter, I will add the infor­ma­tion from it to this page, with doc­u­men­ta­tion, exam­ple files, and the like. For the mean­time, if you’d like to try QED out then click on the image below to down­load the ZIP file con­tain­ing the program.

Note: the zip file doesn’t down­load prop­erly in Inter­net Explorer. It down­loads fine how­ever in Google Chrome. I expect it will also down­load well in other browsers like Fire­fox. So if you only have IE on your com­puter, try to down­load but if it gives you an invalid archive mes­sage, please install another browser instead and then down­load from within it.

Ques­nay Eco­nomic Dynamics

To run it, extract the file to a sub­di­rec­tory and then dou­ble click on the file QED.EXE. This loads the basic interface:

To test run the pro­gram, choose File/Open and select the model “FreeBankingModel.sgr”. This is the first model devel­oped in this paper. To see the model itself, click on the “Actions” menu item and select “Ques­nay Table”. This table will then appear:

To run the model, click on the “Phillips Dia­gram” menu item on the main QED pro­gram win­dow, which will show the fol­low­ing dynamic flow­chart that was gen­er­ated by this table:

Now click on the “Show Player” check­box at the top of the win­dow, and a player will appear down the bot­tom. Click on “Play” and the amounts in the reser­voirs (bank accounts) and flow valves (labelled A to I and with the same descrip­tors as in the left hand col­umn of the Ques­nay Table) will change. If you run it for five years (watch the “MODELTIME” counter in the top right hand side of the dia­gram and click on Stop), you should see the following:

The equa­tions in the model are stored in two other tables acces­si­ble from the “Actions” menu item on the main win­dow:  “Var/Equations” and “C.O.D. Equa­tions” respec­tively. The for­mer gives val­ues to para­me­ters and the like; the lat­ter gives the equa­tions for the flows between the accounts:

There’s a lot more to the pro­gram, but that will have to do for now. To my knowl­edge it’s the only pro­gram around that uses a tab­u­lar inter­face to develop dynamic mod­els, and also pro­vides seam­less each-way devel­op­ment of a sys­tems engi­neer­ing dia­gram (the “For­rester Dia­gram” menu item that I haven’t men­tioned yet) from a table of equa­tions. It is ide­ally suited to mod­el­ling finan­cial flows, and it’s my and my collaborator’s con­tri­bu­tion to help­ing the world under­stand how money works–which is the first step in under­stand­ing why our finan­cial sys­tem has per­formed so badly and given us the GFC.

17 Responses to QED

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  6. cape1232 says:

    Is QED open-source? Are you/the devel­oper look­ing for addi­tional developers?

  7. Steve Keen says:

    Hi Cape1232,

    No, it’s not Open Source, and I’m not the developer–one of the blog­gers here who wishes to remain anony­mous is. He is very much his own man on devel­op­ment, so the deci­sion as to whether another per­son could assist is very much his. I will let him know and, if he is inter­ested, put you in touch.

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  9. sirius says:

    IMHO Excel­lent expo­si­tion using QED here…


    See the 1st video “Keen Talk: Why Credit Money Crashes”. (watch it full screen). Can be down­loaded by click­ing the link below which erro­neously says “Steve Keen’s Debt­watch Pod­cast with Stu­art Cameron”. NB to down­load right mouse click and choose “Save As “.

    Can be viewed in VLC Media Player (open source multi plat­form player )

    See also the talk by Pro­fes­sor Michael Hud­son directly below. ;-)

    p.s. you may find you have to click sev­eral times on the play but­ton of the embed­ded videos before they will play.

  10. Steve Keen says:

    Thanks Sir­ius,

    I’m also putting a brief expo­si­tion of QED into the sec­ond edi­tion of Debunk­ing Economics.

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  13. Glenn Ierley says:

    (try­ing to attach a pdf file with some notes re: Min­sky Mon­e­tary Model 3)

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  15. frankeye says:

    Hello Steve,

    When you find the time (ha!), might you be will­ing to add the DEB (double-entry book­keep­ing) def­i­n­i­tion file(s) to the QED .zip archive?

    Best wishes,

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