Greg Ransom, Hayek, RBC, Barro and channel theory

Hayek also explained the role of the tautological equilibrium construct. It has several, some of these closely echoed earlier by Marshall, Mises, Knight, and other giants of economic science.

The first role is this — the equilibrium construct allows us to perceive the design-like order in the coordination of economic plans. In other words, the equilibrium construct plays a central role in providing us with a perception of a pattern that gives rise to the problem of design-like order without a designer.

The second role is equally significant: by screening off what a tautological logical or math construct cannot include — open-ended learning and changes in understanding and judgment — the equilibrium construct isolates the contingent causal mechanism at the heart of economic explanation, i.e. open-ended learning or discovery and changes in rival understandings and judgments in the the context of changing local conditions and relative prices. It is learning and changes in rival understanding of the relative relational significance of things which allows Hayek’s famous understanding of market prices as signals to function. Taking Haktek seriously 

OK, let's see if I got this explanation right. The equilibrium construct guides local traders to maintain sustainability. When Barro and the Real Business Cycle theory operates, Barro will look back and separate out the equilibrium from the sustainable events that maintain the equilibrium. This is Shannon theory, quantization of goods to maintain sustainable flows within a channel having known bandwidth.

How do agents figure out what the equilibrium might be for a new venture? They run around looking for people waiting in line and insert a service or good. Requantization is the proper name, as simple as that. The bandwidth of the economy is determined by the service time of a human interaction.

Why broadcast radio? Too many people in line at the phone booth and news stand.
Why cars? To much congestion at the railroad stations.
Why airplanes? Too many cars in line on the highway.
Why the Interent? Too many authors waiting in line to get news column space.
Why on line mortgages? Too many people in line to see the loan officer.