# Economic Models: A Collection of Classics

Programs for the Mathematical and Graphical Analysis

#### Martin Skala

Professorship of International Economics

Goods Market (Keynesian Cross), Production Function, and Labour Market can be analysed simultaneously. Demand-driven model with stable disequilibria. Shows the steady-state values of the economy for your choice of aggregate demand, production function and labour supply. Output gaps, unemployment and required fiscal policies are also calculated.

#### Solow Model

The classic of exogeneous growth. Displays steady-state values of the economy. The inclusion of population growth and human capital is possible. Furthermore, a growth forecast of the next period can be provided after specifying an actual capital stock.

#### AK Model

Alias Harrod-Domar Model. A.k.a. Rebelo Model. Easy model of endogenous growth. Displays growth and growth p.C. rates. In addition, you can run an old school World Bank development policy by calculating the "financing gap" for a planned growth rate.

#### Friedman-Phelps Model

Classic damper for excessive hopes in monetary policy. Adjustable inflation expectations and natural unemployment prevent a lasting influence of monetary "tricks" on the economy. You can prescribe five inputs and analyse how short-term real effects (along a short-term Philips curve) dissolve.

#### Interest Rate Parity (CIP, UIP)

The interest rate as a determinant of the exchange rate. Enter the domestic and foreign interest rate as well as the spot rate and obtain the forward rate and the swap rate for the covered interest rate parity (CIP), and the expected rate of change of the exchange rate for the uncovered interest rate parity (UIP) respectively. Appreciation and depreciation expectations are also displayed.

The price level as a determinant of the exchange rate. You will receive the purchasing power parity exchange rate e (PPP) after inserting price levels (absolute PPP) or inflation rates (relative PPP). Specify an actual exchange rate (not equal to e PPP) and the program also calculates appreciation/depreciation expectations as well as the arbitrage of goods.

#### Ricardo Model

The classic of international economics. In addition to the usual results such as comparative cost advantages and transformation curves, here you can quickly discover by changing the world market price why trade is potentially conflict-laden (although "everyone wins") and which five different scenarios should be distinguished.