This paper presents an analysis and a model of the issues related to long and medium-term growth of the world economy with the help of a numerical computerised global economic model named MURFIN-GOG-1 (developed in Islam 2000). MURFIN-GOG-1 is a multi-regional general equilibrium growth model of the global economy with trade and financial interactions and showing the structure of optimal economic growth of the global economy. In this version of the model, six regions of the global economy are included with detailed relationships of the financial sector of the global economy such as exchange rate, price level, nominal economic variables, capital flows, and money supply and demand.
The model can determine the rates at which financial and economic variables and parameters of the global economy should grow so that the global economy expands at the optimum growth rate in the future. The global model contains the elements of an optimal growth program and is solved as a difference game in a dynamic optimisation problem. The modelling study focuses on the issues of optimal financial and real sectoral structures of growth paths and the long-term dynamics of the world economy and its characteristics. The paper analyses the issues of the dynamics of the global economy in terms of the results produced by the model. The nature and patterns of optimal global financial, trade, and economic dynamics and growth suggested by the model's results are especially emphasised.