Money and Macroeconomic Dynamics

  - Accounting System Dynamics Approach -
<Japanese Site>



    I have been working on the draft of Money and Macroeconomic Dynamics, and its system dynamics models since 2003. Latest Edition 5.1 (draft, 648 pages) is completed on Nov. 7, 2020. The book describes macroeconomic system design (called public money system) in Part V for sustainable futures in place of the current debt money systems of macroeconomy in Part II, III and IV. Specifically public money system is proposed to be the solution for the on-going financial and national debt crises that cannot be overcome by the existing macroeconomic policies.
Part VI proposes Electronic Public Money (EPM) as money of the futrues in the age of blockchain revolution.


  The original book is no longer available (out of stock, sorry for inconvenience) from the Amazon, Japan (in English) at
  http://www.amazon.co.jp (Category: Japanese Books, Keyword: Kaoru Yamaguchi)
  Accordingly, its text and diagrams are now freely downloaded for the convenience of readers.
 All SD models in this book now run more smoothly on the latest Vensim Model Reader Ver. 8.2 (Dec., 2020, free download)
.



Money and Macroeconomic Dynamics

- Accounting System Dynamics Approach -


Edition 5.3  Update on May 10,  2021 (free PDF on-line version only)


The entire book of edition 5.3 is now hyper-linked to jump to any chapter and section easily. Accordingly, chapter copies of edition 5.2 are no longer available.

Preface My Off-Rad Journey for A Better World (Contents included)
 
Preface to Edition 5.2
Part I:  Accounting System Dynamics
Chapter 1
System Dynamics (SD models 1Model Guide
Chapter 2
Demand and Supply (SD models 2)
Chapter 3 Accounting System Dynamics (SD models 3)
Part II:  Debt Money System
Chapter 4 Macroeconomic System Overview (SD models 4)
Chapter 5 Money and Its Creation (SD models 5)
Chapter 6 Money as Total Debts (Figures 6) (SD models 6)
Chapter 7 Interest and Equity (SD models 7)
Part III:  Macroeconomic System of Debt Money
Chapter 8 Aggregate Demand Equilibria (SD models 8)
Chapter 9 Integration of Real and Monetary Economies (SD models 9)
Chapter 10 A Macroeconomic System (SD models 10)
Part IV:  Open Macroeconomic Systems of Debt Money
Chapter 11 Balance of Payments and Foreign Exchange (SD models 11)
Chapter 12 Open Macroeconomies as A Closed System (SD models 12)
Part V:  Macroeconomic System of Public Money
Chapter 13 Designing A Public Money System (SD models 13)
Chapter 14 Workings of A Public Money System (SD model 14)
Chapter 15 Monetary and Financial Stability (SD models 15)
Chapter 16
Public Money and Sustainability
Chapter 17  Transition to the Public Money System (SD models 17)
Part VI:  Electronic Public Money
Chapter 18  Electronic Pubic Money (SD models 18)
 (Bibliography included)
   All SD Macroeconomic Models are attached to the book in CD.
  
Unlisted models are available directly from the author at kaoru3860@gmail.com


Accounting System Dynamics - Guest Lectures
at the Graduate School of System Design and Management, Keio University, Tokyo, Feb. 3, 2014

Part 1:  Theory

Accounting
                        System Dynamics Guest Lecture by Dr. Kaoru
                        Yamaguchi

Accounting System Dynamics by Dr.
                      Kaoru Yamaguchi

Please view along with Chaper 3 and Lecture Slides



Innovative Features
(Video Presentation 2013)

This book, as a synthesis of the books by Fisher and Keynes in 1935, will revolutionize the way we analyze macroeconomic behaviors, and give us a hope for building an alternative economic system which will be free from the current financial and debt crises.

Irving Fisher. 100% Money, The City Printing Company, New Haven, 1935.

John M. Keynes. The General Theory of Employment, Interest and Money, Preface, December 13, 1935.


1.  Robust and comprehensive analytical method of the Accounting System Dynamics is applied for the first time in macroeconomic analysis.

     - Accounting System: robust double-entry booking foundation of social science.
     - System Dynamics: dynamic foundation of differential equations in natural science.


2.  Money always sits in the center of the macroeconomic analysis, allowing an inquiry into dynamic macroeconomic behaviors that have been unattainable under a traditional approach of money as an incidental addition to the economy.


3. Current macroeconomic system is identified as a debt money system whose structure causes not only recessions and unemployment, but also financial and debt crises. To avoid these economic instabilities and disasters, an alternative system is proposed as a public money system, and comparative analyses of these two systems are conducted.


4.  All analyses are based on the simulations of the system dynamics models included in the attached CD, so that readers can confirm them easily by running simulations by themselves. In addition they can perform their own scenario analyses on the basis of their own economic interests and economic hypotheses.


5.  All models are  built with standard frameworks found in macroeconomic textbooks, so that they can be easily expanded to the readers' behavioral sophistications as well as their case studies of real economies.


The original book is out of print from the Amazon, Japan (in English)
at http://www.amazon.co.jp (Category: Japanese Books, Keyword: Kaoru Yamaguchi)



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