When central bankers enslave hairdressers

Nick Rowe has an economy of hair dressers who fix each others hair, and a banker bot. He wants to know what happens when banker bot fixes rates forever, and everyone knows.

If the bot sets the rate at 3%, that mans hair dressers will organize such that everyone gets a hair cut about every 28 times that haircuts ate given. The rate gives you yield, the extra good you produce after your unique set of transactions are finished, or how often a transaction can be repeated without being grouped with a duplicate transaction again.  It appears indeterminant to Professor Samuelson because he assumes the ability to keep fractional girl schoolgirls hairdresser on the side, as needed, to avoid bit error.  There is no 'on the side', no empty space.  Time is an output, time is set by the relative time on the graph that the pit boss gets, his transaction rate ticks the clock.

If hairdressers had a compulsive desire to get their hairdressed at different rates than mandated by the central baker, they will form segmented queues, and go queue jumping.  28 hairdressers will march along for half a block, then split up and reform different groups of 28.  Each group meeting the conditions set by the central banker, but cycles on the graph go way up.  Since there ate no fractionl hairdressers,n the parade is a  wonder of switch and regroup, like a fantastic marching band at half time.

But we have that now, nominal rates differ from natural. The result circular loops over in  Swamp, money takes redundant paths as each path segments is adapted to meet the nominal interest rate while reserving the natural.  In other words, the banking system is forced to emulate floating point out of integer arithmetic, and it does.  This model differs from New Kenyesian because the entropy model  counts the cost of the clock, the cost keeping the hairdressors organized. The central bank fixes the precision of the bidirectuonal channel. The hairdressers organize to get their haircuts at the natural rate while keep the bank queuer equal to precision.  They get the same number of haircuts, they just move their hairdressers shops around so the consumer density matches then yield requirements.