Sectors and fix bandwidth Shannon channels

Here is one researcher describing athe fix bandwidth channel of government:

The crisis led to significant fiscal stimulus efforts by the US government to offset the downturn. But this column argues that, properly adjusted for the declining fiscal expenditure of the fifty states, the aggregate stimulus was close to zero in 2009. While a net decline was avoided, the stimulus did not raise aggregate expenditure above its predicted mean. This can explain the anaemic reaction of the US economy to the alleged “big federal fiscal stimulus”.

And here is Gary Gorton describing the banking system, treating is as a deflating production system.

All bond prices plummeted (spreads rose) during the financial, not just the prices of subprime-related bonds. These price declines were due to a banking panic in which institutional investors and firms refused to renew sale and repurchase agreements (repo) – short-term, collateralized, agreements that the Fed rightly used to count as money.

In both cases we have firms jostling for position along the respective yields curves, Each firm trying to maximize its portion of sector yield with limited dimensionality and a deflating distribution system. Both sectors could be analyzed as maximum entropy economic Huffman coders. For government there is likely a version of Hauser's law that covers all of government, federak, state and local. In the banking sector, under deflation, there is not enough of the banker;s yield curve to git the finite number of market interfaces, the queue has to deflate, and one stage of the banking system disappears..