Live data from Hacker News

Show HN: A central bank simulator game with a realistic economic model

benoitessiambre.com

131–140 of 323 posts

Re: Show HN: A central bank simulator game with a realistic economic model

#131

I made this game in order to try to wrap my head around central banks, inflation and macroeconomics, in order to get a better understanding of the aftermath of the global financial crisis and the current period of high inflation. Here is a blog post that goes into further details: https://benoitessiambre.com/simcb.html

Allow me to suggest a taste of history https://www.heritage-history.com/index.php?c=read&author=car... or if you want to cut corners just scroll to the bottom of the page.

To study central banks you need those history before the model :-)

Re: Show HN: A central bank simulator game with a realistic economic model

#132
post #81
post #28

Earlier quoted context omitted.

That would result in an economy with huge deflation: People consuming the bare minimum of apples needed for survival because their gold savings would appreciate each year in value.

Historically 90% of families will lose their wealth within 3 generations. How does that jive with "people will save too much" when it seems rather intuitive monetary policy has nothing to do with how a grandkid who has never worked a day in their life, spends money?

Because saving money is not consuming which is bad for the economy.

Re: Show HN: A central bank simulator game with a realistic economic model

#135

Earlier quoted context omitted.

I've been looking for something similar too, an explanation of the financial system written out in code so that I can try understand it.

While we are at it: I need this for climate change as well

There's The Climate Game¹

1: https://ig.ft.com/climate-game/

2: https://news.ycombinator.com/item?id=31106819

Re: Show HN: A central bank simulator game with a realistic economic model

#136
post #102

Earlier quoted context omitted.

https://www.pragcap.com/bernanke-explains-why-qe2-is-not-mon...

Suppressing rates via QE multiplies the spending power of a dollar, which has a very similar effect as creating more currency

We should consider a lot of this to be zero-sum.

Creditworthy demand for loans doesn't magically increase when rates change or the Fed buys bonds.

In QE, like with accounting, you debit one side and credit the other. Netting to zero.

The effects it all has probably are real in terms of steering where people park their money. And that matters in the long run.

But that would mainly amplify whatever underlying incentive structures exist for investment.

If you steer people to stocks, and the economy has only ponzi schemes to offer, it might be because they haven't figured out a policy framework that promotes actual production.

But you can't magically add production by rewriting the knobs so that they all go to 11. Printing is differently zero sum, but the analogy works there as well.

Re: Show HN: A central bank simulator game with a realistic economic model

#137
After a rather dismal first couple of runs I read the blog post for some hints. The best I found was to try to raise rates during the good times so there is wiggle room during downturns. I was able to get 443,904 by raising to over 10% during the initial prosperity period and was able to cut rates in half as soon as there was a crash. Ultimately I stabilized at around 3.5%. As of the time of this post I think that is the highest or close to highest score, only slightly higher than those that did a constant -0.5%.

I’ve always been apprehensive of how low interest rates dropped around 9/11 and nobody had the political courage to raise them after that, leaving little room for leverage. What I have learned from racing games is that in order to win, it’s not all about holding down the gas pedal the hardest. Its about keeping on the track first, which requires lower speeds to navigate complexity, and only using max speed in straightaways.

Or to quote the eminent Charlie Sheen, right after his infamous ’banging 7 gram rocks’ he said, “I only have one speed, I only have one gear: GO.” History tells how well that worked out.

That may work on a straightaway, but in this world, there’s people and there’s pandemics and wars and politics. Had rates been at a higher level they could have been slashed at the start of the pandemic, but there was no room to drop at that point.

Re: Show HN: A central bank simulator game with a realistic economic model

#139

After a rather dismal first couple of runs I read the blog post for some hints. The best I found was to try to raise rates during the good times so there is wiggle room during downturns. I was able to get 443,904 by raising to over 10% during the initial prosperity period and was able to cut rates in half as soon as there was a crash. Ultimately I stabilized at around 3.5%. As of the time of this post I think that is…

Nice useless car analogy. Signal to noise.

Re: Show HN: A central bank simulator game with a realistic economic model

#140
post #61

Earlier quoted context omitted.

Similarly I immediately lowered to -0.25% and left it there, really quite stable and climbed gradually (not monotically, but close) to 442370. I assume it needs a bit of a tweak for negative inflations, or is limited by the events being fixed - 'people spend 12% less' is more likely to happen at higher interest rates for example. And in particular if we weren't leaving it fixed but had only just lowered it, (i.e. inc…

Isn't a negative interest rate basically UBI?

Erm, because one might hypothetically get paid a small amount for taking a short term loan, and everyone would do that you mean?
Post reply on HN