My view of local, regional and national economies - and indeed of society itself - has over the past decade leaned more and more towards a complex dynamical one. I see economies not as machines but as fluid systems like the atmosphere. Yet the atmosphere is itself made up of molecules which, from the standpoint of human perception, behave as little deterministic machines. And the way in which these molecules interact with each other determines the weather. Economies are also made up of little deterministic machines called businesses. The health of every economy therefore depends on the functionality of its basic elements. This view is what prompted me to develop a practical functional model of a generic business.
A useful spin-off from the above is a message-driven finite-state machine model of a financial transaction. This views a transaction as a pair of logical machines, each of which can occupy, at any given time, any of a small number of logical states. A change of state is triggered by the receipt of a message (order, invoice, payment, etc.) from the other machine, or by local input. This approach provides a complete and formal means of recording and controlling business operations. My current in-house accounting system is itself based upon this finite-state transaction model.
Also incorporated into my in-house accounting system is an automatic budgeting system. This includes a 365th root algorithm which accounts and compensates for inflation on a day-by-day basis. This could be most useful for business involving interchanges with the less-stable currencies. This algorithm aids and complements my experimental work on neural network based market prediction.
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