Comments on: Zero is circular https://www.themintmagazine.com/zero-is-circular/ Published by Promoting Economic Pluralism Tue, 29 Mar 2022 05:06:52 +0000 hourly 1 https://wordpress.org/?v=6.9.1 By: David Harold Chester https://www.themintmagazine.com/zero-is-circular/#comment-19893 Sun, 09 Feb 2020 12:34:45 +0000 https://themint.kinsta.cloud/?p=12521#comment-19893 There is no alternative but for the economy to be circular. This is because the money in it is continuously passing from hand to hand until it gets back to where it started.

In the social system of our macro-economy, it is possible to make a model (in the form of a diagram and by 3 other ways, too), to illustrate how this human situation is experienced. You will find the diagram in my two working papers: SSRN 2600103 “A Mechanical Model for Teaching Macroeconomics” and in SSRN 2865571 “Einstein’s Criterion Applied to Logical Macroeconomics Modelling”.

The other 3 kinds of models of this circulation state are through a compound balance as in the above mentioned machine solution, by a set of simultaneous equations and by the use of a square matrix of the kind that Nobel Laureate Wassiley Leontief proposed. Each of these methods for illustrating our social system is able to bring out different aspects of how macroeconomics works.

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