Thursday, June 4, 2009

Hydraulic Keynesianism, Indeed

A.W. Phillips, who famously noted the relationship between inflation and employment that became the "Phillips curve," was also mechanically inclined... check out the Phillips machine, which models the stocks and flows of the economy with water circulating through a contraption of tanks, valves, pumps and tubes.


For more, see also this Guardian article.

2 comments:

Esen said...

Looks interesting. Would have been better if the demonstration was more smooth and didn't resemble my intro to macro class (where nothing makes sense). I bet it would be a useful machine to use for teaching how basic macro models interact.

Bill C said...

You're right - a good demonstration might be a fun thing to show in class. I vaguely remember seeing a video of it in college, so I think such a thing might exist. I'm going to Cambridge in July, so I may see if I can check out the real thing!