The Synthetic Economic Reality Generator is a computational framework designed to construct, evaluate, and adapt multiple parallel representations of economic systems. Rather than relying on a single model of economic behavior, the system generates a diverse set of synthetic economic environments, each defined by distinct assumptions regarding policy dynamics, structural relationships, and behavioral interactions. Each synthetic world produces its own macroeconomic and financial market outcomes, which are continuously compared against observed real-world data. A scoring mechanism evaluates the degree of alignment across key indicators, including inflation, interest rates, liquidity conditions, credit spreads, and asset performance. Based on this evaluation, probability weights are assigned to each world, allowing the system to dynamically rank and select the most representative models. The framework incorporates a model competition layer in which synthetic economic systems are subject to continuous selection pressure based on empirical fit. Underperforming models are reduced in influence or removed, while new candidate worlds are generated to expand the model space. This process enables adaptive exploration of alternative economic structures and supports continuous refinement of system understanding. In addition, the system includes a structural branching mechanism for scenario expansion, a counterfactual alignment engine for retrospective and real-time evaluation, and a convergence estimator that tracks how reality aligns with or diverges from competing synthetic worlds over time. A meta-generation layer further enhances adaptability by introducing new structural hypotheses when existing models fail to adequately explain observed data. This framework represents an approach to economic modeling centered on probabilistic representation, model diversity, and empirical selection. By treating observed reality as a continuous evaluation function, the system identifies which synthetic economic structures most closely correspond to evolving conditions, enabling adaptive interpretation and forward-looking analysis. This work presents a methodological framework intended for research and educational purposes in computational economics, quantitative finance, and complex systems modeling.
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David Edward Scherer
Quantitative BioSciences
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David Edward Scherer (Sat,) studied this question.
synapsesocial.com/papers/69dc88d83afacbeac03eaa6c — DOI: https://doi.org/10.5281/zenodo.19514426