Calculating Macroeconomics
The complexity of our social system is such that we need to consider all of the possible kinds of business transactions within a stable economy. If we neglect the kinds of these transactions between the same types of agents and consider only the exchanges between different types of them, and for purposes of simplicity take aggregates of all similar deals, how many different kinds of business deals are possible?
The answer is 19.
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1 solution
There are a tabulated list of these kinds of deals in my working paper SSRN 2865571 "Einstein's Criterion Applied to Logical Macroeconomics Modeling", which includes a full explanation of what they are.
TABLE 3. SUMMARY OF THE MONEY-FLOWS
Tax on Personal Income householders to government;
Tax on Land-Value (Revenue) landlords to government;
Tax on Purchases (V.A.T.) householders to government;
Tax on Property (Durable Goods) capitalists to government;
Ground-Rent (on Residential Land householders to landlords;
Ground-Rent (on Productive Land) producers to landlords;
Yield, within the Productive Process producers to capitalists;
Hire-Fees (Domestic) households to capitalists;
Productive" Durable Goods producers to capitalists;
Organized Money-Transfer landlords to capitalists;
Wages (Gross Earnings) producers to householders;
Purchases (Consumption) householders to producers;
Capital Outlay (True Investments) capitalist to producers;
National Appropriations government to householders;
Bank Loans for Re-Circulation banks to government;
Interest in National Bonds government to banks;
"Investments" (and Mortgages) householders to capitalists;
Dividend/Interest on "Investments" capitalists to householders ;
Savings (and Outgoing Loans) householders to banks;
Interest on Savings banks to householders ;