The Yield thing again

Don't need no dialogues.

If the economy is stochastically stable then there must exist an orthogonal decomposition of the economy. That orthogonalization is measured by the financial system, whose system function, the yield curve, is visible.

Hence, the set of functions that make up the yield curve must be maximally uncorrelated, to withing measurement error.

Then apply a queuing model. At stochastical stability, the various yields along the yield curve will vary independent of each other, and dependent upon the economies of scale for inventories with the equivalent term sales cycle.

With constant uncertainty, there is a finite number of bins across the yield curve, equivalent to a multi stage queue. Each queue is drained with a constant stransaction rate, the lot size determining the efficiency of scale. The relative queue sizes, in unit of transaction, generate, by ratio, the price structure. There will be actual production systems tending to allign with the term functions.

Up and down the multi-stage queue, the money good accumulates coherently with goods accumulation, the transmission process between stages is via profit accumulation. The yield curve will have a standard shape at maximum economies of scale for any given technology.