Abstract

ABSTRACT The results of a world trade model that predicts capital and asset flows between the G-20 countries is presented. Each country produces one product and imports a mixture of 20 other products. The model includes agents for merchants, households, banking, production, governments, and a FOREX market. A computer application generates transactions and plots economic trends. Finally, a quantitative easing scenario is investigated displaying the impact of a large economy that expands its money supply and the resultant movement of capital and assets to other countries. Keywords capital flows, assets, consumption, saving rate, desired investment, government spending, bonds, loans, repayments and quantitative easing.

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