A Mechanical Model for Teaching Macroeconomics

The commonly used method for representing macroeconomics as a social system is by assuming the existence of a number of agencies (or entities) and of their various connecting links. In practice this is achieved and illustrated by the use of a block-and-flow diagram. For the case being considered in this paper, the whole social system of a country is deliberately included in its most complete, comprehensive yet simplest possible form (according to the scientific principle known as Occam’s Razor.) By making suitable assumptions, it is found that only 6 entities with 19 connecting links are required (actually 16 are used, 3 being duplicated).This diagram for representing our social system is one of a number of different possible modelling techniques. An alternative way for its expression is by mechanical means, using a number of balancing-beams, weights and strings, with pulley-wheels. This kind of model is especially attractive for purposes of teaching, because of its visual and practical nature, with the ability to adjust it by hand. The use of this mechanical model brings into focus the need for definitions of the various entities within the system and their many functions, which is an attention-grabbing and attractive way of introducing the subject to new students.