This model contains 6 entities: Landlords, Government, House-Holders, Producers, Capitalists and Finance Institutions (banks). They are connected by 19 double flows, consisting of the money that opposes the various kinds of goods, services and valuable legal documents, etc., that are uniquely provided by each entity. The model is expressed in three ways, by a diagram, by a set of algebraic identity-equations, and by using W. Leontief's "input/output" matrix. (The latter is subsequently used in the analysis and the development stages of this work.) The various entities, as parts of the model, are described and used for explanation about the circulation of money, goods, etc. This leads an examination of the matters of the general equilibrium and stability of the system.
Short-term disturbances to the steady-state condition result in the need for decision-making, which is carefully described in necessary detail and later illustrated by four simplified numerical (hand-calculated) examples, three being about changed taxation and the associated short-term dynamics. The decision-making depends on the properties of the 6 entities. These properties are subsequently introduced and explained, to complete the analyses of this aspect of the whole system. This model is capable of simulating the progress of the complete system towards a new state of equilibrium after small changes have been introduced.
Theories about the development of money and banking are given, as well as the use of interest on borrowing. This leads to a discussion about the functions of governmental control over longer periods of time. There follows a development about the most significant factors affecting the limitations to growth of the general system.
The last chapter of the book concludes with a long summary/review about what is implied and what we have learned, which takes into account the particular perspectives used in this work. The significance of topological properties of the system are noted. Past confusion between the macro- and micro- aspects of economics are described and clarified with the aim of their future avoidance. This viewpoint provides a better and somewhat original understanding about what theoretical macroeconomics really is all about. The old concept that Macro- is scaled-up Micro- is dismissed and a whole new science is born! Matters missed out are noted.
Due to a need for continuity, 7 appendices are included. These are:
"A] Definitions of the system;
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