📄️ Sectoral Balance Sheet
This is a snapshot of the model's economy, showing the assets, liabilities, and net worth (equity) of each sector. The fundamental principle is that for every transaction, there is a use of funds (a minus sign, \-) and a corresponding source of funds (a plus sign, \+). For the system as a whole, every transaction must sum to zero, ensuring no money is created or destroyed unaccountably.
📄️ Transactions Flow Matrix
This matrix shows the flows of the economy \- the financial transactions that occur in a single step and cause the stocks on the balance sheet to change.
📄️ Government Class Agent
The government is the fiscal authority; a currency-issuing entity that sets policy. In the historic mode phase of a model scenario run, the government agent will dutifully follow the historical time-series data it consumes in order to set its spending (pure government expenditures). This is the government executing its exogenous logic.
📄️ Central Bank Class Agent
The central bank is the monetary policy authority, constantly balancing its competing mandates for price (inflation) stability, economic growth, and financial stability (bond yields). Like the government, the central bank will dutifully follow the historical time-series data it may consume in order to set its interest (base) rate for the economy. This is the central bank executing its exogenous logic.
📄️ Firm Class Agent
The Firm is the engine of the service-based economy. Firms provide services that are at once produced and consumed. Firms receive revenue from both the government and households; hire and fire households (based on household profile and previous employment history); pay wages, calculate their corporate profits (revenue - wages - interest) and pay corporation tax.
📄️ Household Class Agent
Household behaviours are both nuanced and (wealth) profile-dependent. Households undertake a number of activities in every model step. They strive for paid - wage-bargained - employment, pay tax, make complicated investment decisions and consume.
📄️ Private Bank Class Agent
The private bank is a profit-seeking entity that facilitates almost every financial transaction in the model economy. All electronic financial flows (except for internal central bank operations) pass through its balance sheet.
📄️ Fund Manager Class Agent
The fund manager is a professional agent with an evolving decision-making logic to manage the collective wealth of households in the system. It is a pure fiduciary, its only source of profit is the management fee (a percentage) it charges on its client assets. All other income (interest and dividends) are passed on to the households that have invested in the manager's funds via a higher net asset value (NAV).
📄️ Facilitator Agents
These are simpler, more mechanical agents that provide the system plumbing that makes the model work.
📄️ Theia
Theia is not an agent within the economy. Theia is the main model step; orchestrating the behaviours and functions of all class agents in a strict order, ensuring the play unfolds in the correct sequence, that is, financial flows are logical and stocks are updated correctly.