What is your model of the macro economy? What is the model in your head?

My model for the macro economy is to comprehensively include all of the ins and outs of an economy that can be manipulated in order to predict outcomes of various macroeconomic situations. Variables in this model include GDP growth rate, technological advances, market failures, trade surplus and deficits, investments, inflation, predictions, etc. The model will have to be very complex and would include several other interconnected models to output more accurate results. Models such as DAD-DAS can be used along with Income Expenditure and the Neoclassical Growth Model. Results would also include important markets that influence our economic progress. These markets include but are not limited to the housing, stock, and manufacturing markets. The model will also take in account monetary and fiscal policy. Both forms of policy are instrumental in how our economy is functioning and both must work together and be complimentary of each other to achieve the most optimal results. The model as a whole must be based on mathematical equations and be derived from theory that has been continuously proven to be true. I believe that economic models, and economics as a field, are seen to be conclusive and free from error which is not necessarily the case. Models should be tweaked and improved over times as knowledge surfaces and challenges the status quo. Theories and models should be based on real-life scenarios and should not neglect outliers. Economic anomalies should be studied further and used to advance models and inferences. The health of the overall economy is dependent on many different variables and leaving any of them out is neglectful and can lead to both unpredictable and devastating outcomes.

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