Specificities of LinkNotions’ interactive economic circuit
The analysis of economic links
The interactive diagram of economics analyses a complex and interactive economic system in macroeconomics. It tries to make an analysis of the economic impacts or mutual economic influences.
The non-linearity
Interdependencies of economic factors or interrelationships in macroeconomics reveal that the links are multiple. These are non-linear links and predictions are difficult.
The abitity of simulation
A simulation in economy is not yet possible, but the model already shows in which direction we could go. Much research in economics relationships will be needed to establish coherent links between economic concepts (phenomena).
The complexity of the model
The first of its kind in the world
The interactive economic circuit presented is definitely a world first as to its complexity due to the high number of economic interrelations. No macroeconomic model has been able so far to link as many economic phenomena in a single diagram.
The global approach
Analyze the economic concepts and their links in a macroeconomic approach can reveal the circuit of influences. It is a network approach and the resulting interactive diagram is a table representing the full economic circle. The modeling software allows to search and view the economic interrelations.
The educational aspect
The possibility of economic games
One can easily see the educational aspect of such a software creating interactive diagrams. Teachers can create economic games or write exercises to stimulate a consistent and effective economic thinking. Asking the students for example what is the influence of an increase of unemployment on the exchange rate of the national currency or on the key interest rate. See the economic games and exercices in economics developped by LinkNotions
Analytical functions
The function X to Y shows all paths of influences of an economic concept to any other economic phenomenon. In this way, the software cannot only create and develop a global economy circuit, but also simulate and visualize economic development mechanisms.
Conclusion
Finally we can say that LinkNotions is a research and visualization software. Indeed, it can search for links and interrelationships and show by viewing these interdependencies between economic stakeholders if the model is coherent and what are the possible inconsistencies. Researchers in economics will have to discuss and reveal inconsistencies and develop an economic model including the most possible phenomena.
How to read a LinkNotions diagram (in brief)
How to read a LinkNotions diagram (user manual)
Other interesting page in this context : Economic interrelations
