================ Scenarios GL06LP ================ The following scenarios are available by default for the GL06LP model. Baseline ======== The baseline scenario has the following exogenous values: - Government demand :math:`G = 20` - Interest rate on bills :math:`r_b = 0.03` - Bond price :math:`p_{bl} = 20` Scenario 1: Rise in Interest Rates (Section 5.7) ================================================== A combined increase in both short-term and long-term interest rates. The bill rate rises from 3% to 4%, while the bond price drops from 20 to 15 (the bond yield rises from 5% to 6.67%). This is the experiment discussed in Section 5.7 of Godley & Lavoie (2006), corresponding to Figures 5.2–5.4. Scenario 2: Drop in alpha1 (Section 5.9) ========================================== The propensity to consume out of current income (:math:`\alpha_1`) drops by 0.1. This provides the LP baseline for the hysteresis comparison with Model LP3 (Figure 5.10 vs Figure 5.11).