Money and Macroeconomic Dynamics

  - Accounting System Dynamics Approach -
<Japanese Site>

    I have been working on the draft of Money and Macroeconomic Dynamics, and its system dynamics models since 2003. Latest Edition 2.0 (draft, 506pages) is completed in September 2, 2014. The book describes macroeconomic system design (called public money system) in Part IV for sustainable futures in place of the current debt money systems of macroeconomy in Part II and III. Specifically public money system is proposed to be the solution for the on-going financial and national debt crises that cannot be overcome by the existing macroeconomic policies.

  The original book is not available (out of stock, sorry for inconvenience) from the Amazon, Japan (in English) at (Category: Japanese Books, Keyword: Kaoru Yamaguchi)

(In case of order difficulty, call Japan Custormer Service at 81-11-330-3000, then press 4)
Yet, its text and diagrams are still freely downloaded for the convenience of readers.

Money and Macroeconomic Dynamics

- Accounting System Dynamics Approach -

Edition 3.1  Update on Nov. 11, 2016 (free PDF on-line version only)

Preface My Off-Rad Journey for A Better World (Contents included)
Part I:  Accounting System Dynamics
System Dynamics (Figures 1)
Demand and Supply (Figures 2)
Chapter3 Accounting System Dynamics (Revised) (Figures 3)
Part II:  Macroeconomic Systems of Debt Money
Chapter4 Macroeconomic System Overview (Figures 4)
Chapter5 Money and Its Creation (Revised)  (Figures 5)
Chapter6 Interest and Equity (Figures 6)
Chapter7 Aggregate Demand Equilibria (Figures 7)
Chapter8 Integration of Real and Monetary Economies (Figures 8)
Chapter9 A Macroeconomic System (Figures 9)
Part III:  Open Macroeconomic Systems of Debt Money
Chapter10 Balance of Payments and Foreign Exchange (Figures 10)
Chapter11 Open Macroeconomies as A Closed System (Figures 11)
Part IV:  Macroeconomic System of Public Money
Chapter12 Designing A Public Money System (Figures 12)
Chapter13 Workings of A Public Money System (Figures 13)
Chapter14 Monetary and Financial Stability (Figures 14)
Public Money and Sustainability (Figures 15)
A Transition to the Public Money System  (Figures 16)
     (Bibliography included)
   All SD Macroeconomic Models are attached to the book in CD.
They are also available directly from the author at

Accounting System Dynamics - Guest Lectures
at the Graduate School of System Design and Management, Keio University, Tokyo, Feb. 3, 2014

Part 1:  Theory

Accounting System Dynamics Guest Lecture by Dr. Kaoru Yamaguchi

Accounting System Dynamics by Dr. Kaoru Yamaguchi

Please view along with Chaper 3 and Lecture Slides

Innovative Features
(Video Presentation 2013)

This book, as a synthesis of the books by Fisher and Keynes in 1935, will revolutionize the way we analyze macroeconomic behaviors, and give us a hope for building an alternative economic system which will be free from the current financial and debt crises.

Irving Fisher. 100% Money, The City Printing Company, New Haven, 1935.

John M. Keynes. The General Theory of Employment, Interest and Money, Preface, December 13, 1935.

1.  Robust and comprehensive analytical method of the Accounting System Dynamics is applied for the first time in macroeconomic analysis.

     - Accounting System: robust double-entry booking foundation of social science.
     - System Dynamics: dynamic foundation of differential equations in natural science.

2.  Money always sits in the center of the macroeconomic analysis, allowing an inquiry into dynamic macroeconomic behaviors that have been unattainable under a traditional approach of money as an incidental addition to the economy.

3. Current macroeconomic system is identified as a debt money system whose structure causes not only recessions and unemployment, but also financial and debt crises. To avoid these economic instabilities and disasters, an alternative system is proposed as a public money system, and comparative analyses of these two systems are conducted.

4.  All analyses are based on the simulations of the system dynamics models included in the attached CD, so that readers can confirm them easily by running simulations by themselves. In addition they can perform their own scenario analyses on the basis of their own economic interests and economic hypotheses.

5.  All models are  built with standard frameworks found in macroeconomic textbooks, so that they can be easily expanded to the readers' behavioral sophistications as well as their case studies of real economies.

The original book is out of print from the Amazon, Japan (in English)
at (Category: Japanese Books, Keyword: Kaoru Yamaguchi)

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