Date of Award


Document Type


Degree Name

Master of Science


Department of Operational Sciences

First Advisor

Darryl K. Ahner, PhD.


This research proposes a methodology to develop models for the greater understanding of the application of the economic instrument of national power through a selection of factors that define the economic condition of a country. The major components of an economy are identified as GDP per capita, a treasury bond yield, and a major stock market index. The components have interconnected dynamics along with external influences from the United Stated Federal Funds Rate and foreign direct investment. These connections are considered through a metamodel in the form of a system of differential equations which is solved as an inverse problem. The validity of the model is verified and the model is then used in making short term forecasts. What-if analysis of various policies is explored resulting in insight to policy changes. Through an increased understanding and awareness of the dynamics of the economic environment, a foundation for analysis is built to begin addressing the impacts of pecuniary warfare tactics.

AFIT Designator


DTIC Accession Number