Brad DeLong and his search for asymmetry

Brad ponders how he can get an asymmetric theory to explain lack of symmetry. I give him the short answer, asymmetry is built into the quantum theory.

Once the transaction starts, the long term eigenvalues are computed before the results of the transaction complete. We cannot do the reverse, go back in time and reverse the long term estimates while the transaction is ongoig.

This is also why Paul has causality reversed, thinking short term interest rates predict lng term. Short term rates are determined by the remainder of the transaction, after the long term estimates are made.

Brad may ponder why transactions are not infinitely short, as they are in all of his models. Physical inertia, the Hamiltonian component of the system. we will talk about that later, but I have to run an errand.

The Hamiltonian in this situation re the economies of scale, teh Hayek minimization of transaction. That Hamiltonian determines momentum and delay in each of the micro transactionas that make up the system. Each of Brad's models assume instant transactions, which violates the macro premis. Each of these transactions will have delay, synchronous with the marco delay determine by the Hamiltonian. That delay, plus the constant of uncertainty get you asymmetry. The micro transaction will get partial results, in units determined by the yield curve eigenfunctions, becaue that micro transaction will have delays proportional to the distribution of arrivals in the yield curve.

Or something like that.