The MONIAC (Monetary National Income Analogue Computer), also known as the Phillips Hydraulic Computer and the Financephalograph, was created in 1949 by the

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...

economist Bill Phillips to model the national economic processes of the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...

, while Phillips was a student at the

London School of Economics , mottoeng = To understand the causes of things , established = , type = Public research university , endowment = £240.8 million (2021) , budget = £391.1 millio ...

(LSE). The MONIAC was an

analogue computer An analog computer or analogue computer is a type of computer that uses the continuous variation aspect of physical phenomena such as electrical, mechanical, or hydraulic quantities ('' analog signals'') to model the problem being solved. In ...

which used

fluidic logic Fluidics, or fluidic logic, is the use of a fluid to perform analog or digital operations similar to those performed with electronics. The physical basis of fluidics is pneumatics and hydraulics, based on the theoretical foundation of fluid dyn ...

to model the workings of an economy. The MONIAC name may have been suggested by an association of

money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are as ...

and

ENIAC ENIAC (; Electronic Numerical Integrator and Computer) was the first programmable, electronic, general-purpose digital computer, completed in 1945. There were other computers that had these features, but the ENIAC had all of them in one packa ...

, an early electronic

digital computer A computer is a machine that can be programmed to carry out sequences of arithmetic or logical operations ( computation) automatically. Modern digital electronic computers can perform generic sets of operations known as programs. These pro ...

Description

The MONIAC is approximately 2 m high, 1.2 m wide and almost 1 m deep, and consisted of a series of transparent plastic tanks and pipes which were fastened to a wooden board. Each tank represented some aspect of the UK national

economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...

and the flow of money around the economy was illustrated by coloured water. At the top of the board was a large tank called the treasury. Water (representing money) flowed from the treasury to other tanks representing the various ways in which a country could spend its money. For example, there were tanks for health and education. To increase spending on health care a tap could be opened to drain water from the treasury to the tank which represented health spending. Water then ran further down the model to other tanks, representing other interactions in the economy. Water could be pumped back to the treasury from some of the tanks to represent

tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...

ation. Changes in tax rates were modeled by increasing or decreasing pumping speeds.

Savings Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...

reduce the funds available to consumers and

investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

income increases those funds. The MONIAC showed it by draining water (savings) from the expenditure stream and by injecting water (investment income) into that stream. When the savings flow exceeds the investment flow, the level of water in the savings and investment tank (the surplus-balances tank) would rise to reflect the accumulated balance. When the investment flow exceeds the savings flow for any length of time, the surplus-balances tank would run dry. Import and export were represented by water draining from the model and by additional water being poured into the model. The actual flow of the water was automatically controlled through a series of floats, counterweights, electrodes, and cords. When the level of water reached a certain level in a tank, pumps and drains would be activated. To their surprise, Phillips and his associate Walter Newlyn found that MONIAC could be calibrated to an accuracy of 2%. The flow of water between the tanks was determined by economic principles and the settings for various parameters. Different economic parameters, such as tax rates and investment rates, could be entered by setting the valves which controlled the flow of water about the computer. Users could experiment with different settings and note the effect on the model. The MONIAC's ability to model the subtle interaction of a number of variables made it a powerful tool for its time. When a set of parameters resulted in a viable economy the model would stabilise and the results could be read from scales. The output from the computer could also be sent to a rudimentary

plotter A plotter is a machine that produces vector graphics drawings. Plotters draw lines on paper using a pen, or in some applications, use a knife to cut a material like vinyl or leather. In the latter case, they are sometimes known as a cutting pl ...

. MONIAC had been designed to be used as a teaching aid but was discovered also to be an effective economic simulator. At the time that MONIAC was created, electronic digital computers that could run complex economic simulations were unavailable. In 1949, the few computers in existence were restricted to government and military use. Neither did they have adequate visual display facilities, so were unable to illustrate the operation of complex models. Observing the MONIAC in operation made it much easier for students to understand the interrelated processes of a national economy. The range of organisations that acquired a MONIAC showed that it was used in both capacities. Phillips scrounged a variety of materials to create his prototype computer, including bits and pieces from war surplus such as parts from old

Lancaster bomber The Avro Lancaster is a British World War II, Second World War heavy bomber. It was designed and manufactured by Avro as a contemporary of the Handley Page Halifax, both bombers having been developed to the same specification, as well as the S ...

s. The first MONIAC was created in his landlady's garage in

Croydon Croydon is a large town in south London, England, south of Charing Cross. Part of the London Borough of Croydon, a local government district of Greater London. It is one of the largest commercial districts in Greater London, with an extensi ...

at a cost of £400 (). Phillips first demonstrated the MONIAC to a number of leading economists at the LSE in 1949. It was very well received and Phillips was soon offered a teaching position at the LSE.

Current locations

It is thought that twelve to fourteen machines were built. * The prototype was given to the Economics Department at the

University of Leeds , mottoeng = And knowledge will be increased , established = 1831 – Leeds School of Medicine1874 – Yorkshire College of Science1884 - Yorkshire College1887 – affiliated to the federal Victoria University1904 – University of Leeds , ...

, where it is currently on exhibition in the reception of the university's Business School. Copies went to three other British universities. * Other computers went to the

Harvard Business School Harvard Business School (HBS) is the graduate business school of Harvard University, a private research university in Boston, Massachusetts. It is consistently ranked among the top business schools in the world and offers a large full-time MBA p ...

and Roosevelt College in the United States and

Melbourne University The University of Melbourne is a public research university located in Melbourne, Australia. Founded in 1853, it is Australia's second oldest university and the oldest in Victoria. Its main campus is located in Parkville, an inner suburb nor ...

in Australia. The

Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...

and the Central Bank of

Guatemala Guatemala ( ; ), officially the Republic of Guatemala ( es, República de Guatemala, links=no), is a country in Central America. It is bordered to the north and west by Mexico; to the northeast by Belize and the Caribbean; to the east by H ...

are believed to have bought MONIACs. * A MONIAC owned by

Istanbul University , image = Istanbul_University_logo.svg , image_size = 200px , latin_name = Universitas Istanbulensis , motto = tr, Tarihten Geleceğe Bilim Köprüsü , mottoeng = Science Bridge from Past to the Future , established = 1453 1846 1933 ...

is located in the Faculty Of Economics and can be inspected by interested parties. * A MONIAC from the LSE was given to the

Science Museum A science museum is a museum devoted primarily to science. Older science museums tended to concentrate on static displays of objects related to natural history, paleontology, geology, industry and industrial machinery, etc. Modern trends in mu ...

in London and, after conservation, was placed on public display in the museum's mathematics galleries. * A MONIAC owned by the LSE was donated to the

New Zealand Institute of Economic Research The New Zealand Institute of Economic Research (NZIER) is the largest independent think tank in New Zealand. It is non-profit incorporated society and was established in 1958. It seeks to take a centrist, politically neutral position. It has a sta ...

Wellington, New Zealand Wellington ( mi, Te Whanganui-a-Tara or ) is the capital city of New Zealand. It is located at the south-western tip of the North Island, between Cook Strait and the Remutaka Range. Wellington is the second-largest city in New Zealand by metr ...

. This machine formed part of the New Zealand Exhibition at the

Venice Biennale The Venice Biennale (; it, La Biennale di Venezia) is an international cultural exhibition hosted annually in Venice, Italy by the Biennale Foundation. The biennale has been organised every year since 1895, which makes it the oldest of ...

in 2003. The MONIAC was set to model the New Zealand economy. In 2007 this machine was restored and placed on permanent display in the

Reserve Bank of New Zealand The Reserve Bank of New Zealand (RBNZ, mi, Te Pūtea Matua) is the central bank of New Zealand. It was established in 1934 and is constituted under the Reserve Bank of New Zealand Act 1989. The governor of the Reserve Bank is responsible for N ...

Museum. * A working MONIAC (or Phillips Machine as it is known in the UK) can be found at the Faculty of Economics at

Cambridge University , mottoeng = Literal: From here, light and sacred draughts. Non literal: From this place, we gain enlightenment and precious knowledge. , established = , other_name = The Chancellor, Masters and Schola ...

in the

. This machine was restored by Allan McRobie of the

Cambridge University Engineering Department The University of Cambridge Department of Engineering is the largest department at the University of Cambridge and one of the leading centres of engineering in the world. The department's aim is to address the world's most pressing challenges wit ...

, who holds an annual demonstration to students. * A replica of the MONIAC at the

central bank of Guatemala The Bank of Guatemala ( es, Banco de Guatemala) is the central bank of Guatemala. It was established in 1945. It is one of the most recognized Brutalist themed architectural structures. Designed by architects José Montes Córdova and Raúl Mi ...

was created for a 2005-6 exhibition entitled "Tropical Economies" at the Wattis Institute of the

California College of the Arts California College of the Arts (CCA) is a private art school in San Francisco, California. It was founded in Berkeley, California in 1907 and moved to a historic estate in Oakland, California in 1922. In 1996 it opened a second campus in San ...

San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...

. * The MONIAC at The University of Melbourne, Australia, is on permanent display in the lobby of the Giblin Eunson Library (Ground Floor, Business and Economics Building, 111 Barry st, Carlton, Melbourne). The faculty has extended an invitation to anyone interested in restoring the MONIAC to functional capacity. * Erasmus University Rotterdam (EUR) has owned a MONIAC since 1953. It was a gift from the City of Rotterdam for EUR's 40th anniversary. It is located in the THEIL building. *

Clausthal University of Technology The Clausthal University of Technology (german: Technische Universität Clausthal, also referred to as TU Clausthal or TUC) is an institute of technology ('' Technische Universität'') in Clausthal-Zellerfeld, Lower Saxony, Germany. The small publ ...

in the faculty of economic sciences.

Popular culture

The

Terry Pratchett Sir Terence David John Pratchett (28 April 1948 – 12 March 2015) was an English humourist, satirist, and author of fantasy novels, especially comical works. He is best known for his ''Discworld'' series of 41 novels. Pratchett's first nov ...

novel ''

Making Money ''Making Money'' is a fantasy novel by British writer Terry Pratchett, part of his ''Discworld'' series, first published in the UK on 20 September 2007. It is the second novel featuring Moist von Lipwig, and involves the Ankh-Morpork mint and ...

'' contains a similar device as a major plot point. However, after the device is fully perfected, it magically becomes directly coupled to the economy it was intended to simulate, with the result that the machine cannot then be adjusted without causing a change in the actual economy (in parodic resemblance to

Goodhart's law Goodhart's law is an adage often stated as, "When a measure becomes a target, it ceases to be a good measure". It is named after British economist Charles Goodhart, who is credited with expressing the core idea of the adage in a 1975 article on mon ...

References

Documentary

* "The League of Gentlemen". Third Episode of ''

Pandora's Box Pandora's box is an artifact in Greek mythology connected with the myth of Pandora in Hesiod's c. 700 B.C. poem ''Works and Days''. Hesiod reported that curiosity led her to open a container left in the care of her husband, thus releasing phys ...

'', a documentary produced by Adam Curtis

External links

BBC Radio Four programme 'Water on the brain'.

NZIER's Moniac Machine
Article includes picture of NZIER Moniac * ''Inc.'' article

* ''Wetware'' article
Money Flows: Bill Phillips' Financephalograph

* *
A great disappearing act: the electronic analogue computer
Chris Bissell, The Open University, Milton Keynes, UK. Presented at IEEE Conference on the History of Electronics, Bletchley Park, UK, 28–30 June 2004. Moniac on pages 6 and 7. Accessed February 2007
Catalogue of the AWH Phillips papers
at th

of the

London School of Economics , mottoeng = To understand the causes of things , established = , type = Public research university , endowment = £240.8 million (2021) , budget = £391.1 millio ...

. *
Video of the Phillips Machine in operation
Allan McRobie demonstrates the Phillips Machine at Cambridge University and performs calculations. (A lecture given in 2010). * Contains detailed diagrams of the Machine workings
The Phillips Machine
Article includes links to videos of the machine in operation. *
LSE Photo of Phillips with the machine

Bill Phillips Lecture
by

Alan Bollard Alan Esmond Bollard (born 5 June 1951) is a New Zealand economist. He currently serves as the as chair of the New Zealand Infrastructure Commission. He previously served as the Executive Director of the Asia Pacific Economic Cooperation (APEC) ...

, 16 July 2008
Philips Machine SimulatorPhillips Economic Model
on display in the Science Museum, London

Istanbul University Moniac Meeting {{DEFAULTSORT:Moniac Computer 1940s computers Analog computers Computer-related introductions in 1949 Early British computers Economics models Mechanical computers New Zealand design