I have added an intermediate variable, delta. Using the same terminology I have:
D/delta*(1+d)^2 - L/delta*(1+l)^2 = 1
The delta is the proportion that makes the unit one, but it cancels in the flow constraints. But we will be using it. Let me remind my readers, the equation above simply states the condition that the growth on D and L are within the bandwidth needed for causality. That is two period look ahead is ensured.
Delta, for the hyperbolic banker, is the amount of growth expected, I think. Since we have a finite banker net, the period must correspond to rates d and l. The term at each level of banker net changes, and rates correspond. How do we find the term in units of time? We measure the activity at equilibrium, time in an output. So this is different than DSGE style equilibrium because we equilibriate over flows.
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