Editing Simulation (section)

===Economics===
{{Unreferenced section|date=September 2021}}
'''Simulations in economics'''<!--boldface per [[WP:R#PLA]]--> and especially in [[macroeconomics]], judge the desirability of the effects of proposed policy actions, such as [[fiscal policy]] changes or [[monetary policy]] changes. A mathematical model of the economy, having been fitted to historical economic data, is used as a proxy for the actual economy; proposed values of [[government spending]], taxation, [[open market operations]], etc. are used as inputs to the simulation of the model, and various variables of interest such as the [[inflation rate]], the [[unemployment rate]], the [[balance of trade]] deficit, the government [[budget deficit]], etc. are the outputs of the simulation. The simulated values of these variables of interest are compared for different proposed policy inputs to determine which set of outcomes is most desirable.<ref>{{Cite web|url=https://www.imf.org/external/pubs/ft/fandd/basics/models.htm|title=Finance & Development}}</ref>