The Phillips Machine ( MONIAC ) - Demonstrated by Professor Allan McRobie and Emily Evans

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The Phillips Machine ( MONIAC ) - Demonstrated by Professor Allan McRobie and Emily Evans - May 2022

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Faculty of Economics, University of Cambridge

2 жыл бұрын

Allan McRobie, Professor of Structural Engineering (Department of Engineering, Cambridge), demonstrates "The Phillips Machine". This was filmed in the Faculty of Economics on 19th May 2022.
The Phillips Machine was invented in the 1950's by William (Bill) Phillips to calculate the workings of the UK national economy using water. It is also known as a MONIAC (Monetary National Income Analogue Computer)

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@psikeyhackr6914 3 ай бұрын

Where does the machine compute the depreciation of durable consumer goods?

@Grizabeebles 8 ай бұрын

Maybe I missed it in this video but I saw in a different video that if the propensity to consume ever reaches or exceeds 100% income - possibly even through something as simple as a large enough volume of savings being pushed back into the system all at once - it causes a feedback loop where water starts spilling out of the top of the machine. Is this analogus to any actual historical economic crisis? Because it kind of feels like an explanation for how decades of deficit spending by governments is related to the hollowing out of the middle class and the increasing number of billionaires.

@michaelderry1486 7 ай бұрын

The hollowing out of the middle class and increasing number of billionaires has more to do with the distribution of the gains from production. This is not a part of the Moniac which addresses only consumption and production. The effects of distribution is not a part of most macroeconomic models (which tend to ignore distributional effects). The effects of deficit spending will vary with the state of the economy but are not related to distribution (it affects investment and economic growth). It is the repayment of debt that can have distributional effects. If the MPC ever exceeds 100% in a country the result would be high inflation and high interest rates. This would eventually empty the investment pool and to maintain above 100% would require a sharp increase in imports and exports. Even that would be limited since global MPC can not exceed 100%. he result would be a contraction in the economy and falls in GDP that are severe and prolonged. To my knowledge there is no historical economic crisis related to a MPC equaling or exceeding 100%.