Saturday, July 5, 2014

The Rahn currve, Treasury Curve and Plank's curve

The Rahn curve is a probability distribution, just like the Plank's curve. The X Axis is term, as in term structure as used in the Treasury curve, or wavelength in the Plank's curve. So, short term mean frequent activities in the economy. The Y axis is simply the probability that the actions available to the economy will result in activity at the term length on the X axis, at maximum entropy, (emphasis mine). The Treasury curve is simply the cumulative distribution of the Rahn curve, as near as I can tell. That is, bankers curves are always upward sloping.

The Rahn curve, the Yield curve and Planks curve include all activities in the economy, or in the atom, or in the system.  That is, it includes all the bounded band separators for all separable groups. So it would be my spectral curve of the proton after applying all the base bounds and creating the corresponding unit spheres through exponentiation. The Rahn curve is simply the radiation curve of the economy. It is mentioned with reference to government since government is has the least degrees of freedom in its band width, and thus government is the constricting bounds against which other unit spheres have to separate.

The Rahn is thus the fundamental distribution of the economy at maximum entropy. The peak is the temperatue of the economy at maximum efficiency. Altering the efficiency value, as we should, will distort the curve, so this is the maximum.  It is a recursive function, so it will be a hyperbolic differential, I think.

Inefficiency results because the (1/p)*Log(1/p) are not all within one, which is the maximum entropy condition.  The set p are prices, a finite set, I would think. The pricing is inefficient for a number of reasons, like distortion of fair voting and over bearing central banks result in sub-optimum currency zones.

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