Overview of Each Nations Economic State Dynamics and Control: Equations of GDP, Interest Rate, Employment, Value of Capital Stock, Prices, Cumulative Balance of Payment

Abstract

The economic state is x = [y, R, L, k, p, E). We now recall our earlier equations for interest rate [2, p. 29] – Stability and Time Optimal Control of Hereditary Systems with Applications to Economic Dynamics of the USA. Let M denote money supply (e.g., M1)

$$\overline{L} = {\rm money\,demand} \approx {\rm Md}$$