Monday, April 30, 2018

We see DSGE in sandbox

The Solow model is what might happen if the channel version recursively let the window sizes grow. Solow finds the smooth path to the ratio of capital to labor. 

This would be a two color model filling a finite channel in our view.  Each of the buy and sell queues constantly adapting to its allocated channel share. They have tint, slightly varying, The pit boss forces them to white at balance.

The more colors the more confinement as the pit boss gets extra bandwidth, its a monopoly exchange, after all. Imagine the simple three color currency pit, Quark Exchange, we call it. Traders engage in triple entry accounting against three currencies. Powerful tool, likely defeats bitcoin.

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