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A Simple Stock Flow Model of the Danish Economy

Chapter

Abstract

This study describes the simple model of the Danish economy which we used for a course on macroeconomics in Aalborg during the winter of 1987–8. Our model differed from the conventional textbook IS-LM model in that it included, right from the start, a representation of stock (or balance sheet) variables which were consistently interrelated with flow variables. The statistical embodiment of the theoretical model constituted a useful introduction to economic statistics and the functional relationships were studied as part of an introduction to econometrics. The model as a whole was then simulated to discover something about how a real life economy works.

Keywords

Interest Rate Capital Gain Interest Payment Nominal Exchange Rate Government Debt 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Helge Brink 1992

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