Implementation of simulation model of world economy using LSD

摘要

We describe the implementation of a simulation model of world economy using LSD application. The model is structured in three objects: WE, NE(i) and FCM(i, j). For every object, we describe the parameters, the initial variables and the code lines of equations. We do three simulation experiments and the conclusion is that a broader exchange rate band has a negative impact over the volume of the world trade.