If I want to create my own currency model what would be the best basic options / things / ideas I need to look into? [closed]

First of all, I am from a IT background and currently writing my thesis on a system in which I am have to create a model of a nation. So to run the economy in this simulation (for now you can understand it as a simulation), I need appropriate economic models and monetary policy. I have done my reading on the basics of monetary policy and how central banks are responsible to control the inflation and deflation of currency. And also, I am aware of the gold reserve which now is more like a fractional reserve system. I do understand that the purpose of my project strongly matters in this case, but for a start, a very basic model would be enough. I already am familiar with crypto currencies like Bitcoin, Ethereum etc. Also, this system is run by computer so it's human error / politics proof, or a bit more like an ideal system. So, it would be great to have your insights/opinions on how should I design the currency and the economic model.

• There is no clear or succinct answer to this question. As such, it is not really a good fit for the SE format. Nov 8 '16 at 11:39
• This question is a bit too broad to give a good answer, but if you are looking at just modelling monetary policy stuff, you can try a New Keynesian model. If that's a bit too involved, you can do a simple game where the Federal Reserve has to deal with the Phillips curve. As for tax policy, you can try looking at Harberger's Incidence model (1962), although it is rather restrictive. Good luck. Nov 14 '16 at 18:19
• economics.stackexchange.com/questions/9045/… This is what I refer to when talking about a game the Federal Reserve has to play, though it is a very simple formulation of it. (Shameless self-promotion woo) Nov 14 '16 at 18:22

• Thanks Mick. Regarding interest, if i am correct,it is basically charged to compensate the loss in the value of money lended today right. As "100$today is more valuable that 100$ tomorrow". But what if there is deflation in the system? Nov 8 '16 at 11:11