Models / Route

Intuition first

Simple Theoretical Models

Intuition-first frameworks map inflation, output, policy, labor slack, and growth before heavier statistical machinery arrives.

Section Notes
Route notes

See curve shifts immediately as each control moves.

Link output to demand, policy, labor slack, inflation, and long-run growth regimes from Solow to AK, MRW, and Malthusian adjustment.

Keep model interpretation readable and consistent with the macro layer.

Interactive model workbench

Live macro simulations translated from your `MacroGraph_Sims` folder.

Each framework keeps the controls, charts, and equilibrium read in one place.

Swap LM for MP, toggle the Phillips block, and trace how policy shifts output, rates, and inflation.

Demand, policy, inflation

Interactive demand-policy switcher

Replace the old IS-LM-PC view with a modular policy block: LM or MP on the left, Phillips in the middle, and reduced-form AD when monetary policy is active.

Starts at output potential with inflation on target.

Policy block

Phillips block

BP overlay

Working equations

These are teaching-form equations, not a full microfounded system. The charts stay reduced-form on purpose.

MP / Taylor-style block

i = i₀ + φ_y (Y - Y*) + φ_π (π - π*)

MP is a reduced-form Taylor-style rule with output-gap and inflation-response terms.

Phillips block

π = π̄ + κ(Y - Y*) + ν

Base inflation is the intercept; κ governs how the output gap moves current inflation.

IS block

i = a_IS - b_IS Y

The IS line is a reduced-form goods-market schedule: higher rates lower desired spending.

Key readings

Live output, rate, inflation, and external-rate readings from the active block.

Policy is sitting close to neutral: output is near potential, inflation is around 2.00, and the rate block clears near 2.00.

Equilibrium Output

100.0

Policy / Rate

2.00

Inflation

2.00

Output Gap

0.0

Policy Block

MP

BP Rate at Y

3.00

Parameters

Only the active framework’s controls stay visible so the switcher stays readable.

IS Intercept

7.5

IS Slope

0.055

Policy Base Rate

2.0

Output Response

0.020

Base Inflation

2.0

PC Slope (κ)

0.040

Potential Output (Y*)

100.0

Inflation Target

2.0

Inflation Response (φπ)

1.5

Supply Shock (ν)

0.0