Basket brigade does Sumners economics model

The Scott Sumner economic theory The simple two color pit model handles it  all.

1. A production possibilities frontier, which gradually shifts out due to productivity and labor force growth. That's the "old classical" part.

The tradebook is the frontier.  Bots work the tradebook and have equal, round robin,  view of its state. The frontier means pack sphere. Basket brigade means  larger baskets fill smaller baskets, this is sphere packing

2. An AS/AD model that causes output to cycle above and below the PPF, due to monetary shocks (NGDP) plus sticky wages.

Inside information revealed and priced. The auto traded S&Ls can maintain adiabatic flow (within published bounds)

3. A "reallocation" problem when the economy needs to move quickly along the PPF. In that case, the economy will briefly dip inside the PPF, as resources in one sector cannot be costlessly reallocated to another sector

Requantize the trade book. It is  quite simple, all handled by auto-pricing. The pit boss forces the requant when matching error exceeds bounds.  Requant means 'change basket sizes'


The trade book is your standard Redneck S&L reference architecture. Always say, Redneck compatible auto traded multicolor pits. The high school kids can figure it out.