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Techniques and concepts from cybernetics and engineering are used to combine partial models from economic literature into a more comprehensive macroeconomic model. The resulting linear model is capable of exhibiting short-period inventory cycles and long-period fixed capital investment cycles around a long-term constant growth rate trend. The rate of growth of total production is controlled by a monetary mechanism which links innovative investment to the level of unemployment.
Systems, Man and Cybernetics, IEEE Transactions on (Volume:SMC-1 , Issue: 1 )
Date of Publication: Jan. 1971