Seventy-five years after the unveiling of Bill Phillips' groundbreaking hydraulic computer, the Financial Times (FT) has reimagined the invention for the digital age. The iconic "Phillips Machine," an analog economic model designed to demonstrate the circular flow of income, has now been transformed into an immersive virtual experience using cutting-edge mixed reality technology.
Showpiece in the heritage collection of Erasmus University Rotterdam
The Phillips Machine, also called the Moniac, or Monetary National Income Analogue Computer, was created in 1949 by the New Zealand economist Bill Phillips. It churned out solutions to equations, using hydraulics instead of differential calculus to calculate the answers. It was a simple computer, although not quite as simple as one might assume. It could solve nine differential equations simultaneously and within a few minutes — a feat that was impossible by hand. Even in the 1950s, economic models were worked out by rooms full of human “computers”. It would be years before digital computers could support economic models as complex as the Moniac’s.
Phillips made 14 machines in all, and one ended up at the Netherlands School of Economics, the predecessor of Erasmus School of Economics. It is an absolute showpiece in the university’s heritage collection, standing in the hall of the Theil building, nearby CB-01. The Municipality of Rotterdam donated the Phillips Machine for educational purposes on the fortieth anniversary of the Netherlands School of Economics in 1953.
A historic invention, revived for the digital era
Recognising its educational potential, a team at the FT has created a digital version of the machine. The introduction of Apple's Vision Pro headset in 2023, with its high-resolution display and immersive spatial computing capabilities, provided the ideal environment for a fully interactive digital Phillips Machine.
The digital version of the machine allows users to experiment with economic variables, adjusting factors like taxation and consumption to observe their effects. The app offers structured explanations of key economic principles, making it an engaging educational tool for students and enthusiasts alike.
Using advanced techniques, the team has recreated every detail in 3D. The model is developed using Autodesk Maya and is brought to life through the Unity gaming engine. Even the distinctive "pink water" that represents monetary flows in the machine is simulated with precision, aided by academic research into the machine’s original functionality.
- More information
See these links to the FT articles: The FT Money Machine: how we transformed an iconic invention for virtual reality and How a mind-boggling device changed economic history.
For more information, please contact Ronald de Groot, Media and Public Relations Officer at Erasmus School of Economics, rdegroot@ese.eur.nl, mobile: +31 6 53 641 846.
