"The MONIAC — short for Monetary National Income Analogue Computer — was a machine that analyzed economic data using, yes, hydraulics. Basically, it pumped water through pipes and tanks in an effort to simulate an economy and make predictions about its future. [..]
The machine’s various tanks and flows represent different parts of an economy, such as banks, consumer spending, personal savings, taxes, foreign holdings, and more. As McRobie explains, if you find that the personal savings tank is getting too full and you want to encourage more investment, you can simulate a drop in interest rates by widening the bank’s valve so that money flows more freely through the system."
I guess MONIAC is the wet dream of every Keynesian central planner; I suspect Mr. Abe is using his right now to figure out where all that Yen-water went that he printed. Perhaps he should have closed the carry trade valve to avoid recession?
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