economic simulation

Economic simulation is a computer-based method used to model and analyze how an economy might behave under different conditions. By creating a virtual environment that mimics real-world economic factors—such as prices, employment, and government policies—analysts can test scenarios without real-world risks. This helps in understanding potential outcomes of policy changes or market shifts, allowing decision-makers to explore strategies, forecast future trends, and make informed choices. Essentially, it’s like a detailed, interactive “practice run” for economies, providing insights into complex interactions within financial systems.