Sunday, March 31, 2019

My ISLM part two

I simple took the normal ISLM model and replaced it with a pressure formula.  There is no effort to verify sign or up and down, just hand wave this as a gravity model.

That middle portion is what I clled second derivative in the continuous sense.  In the quantum sense, it is ultimately the power to exchange transactions and bounce around somewhere near the bottom well.  We always want to bounce toward the well bottom, there is where the most accurate match between Savings and Loans will lie.

The compact graph generates the typical sequence of jumps about that combinatorial peak. Inside the peak, the commuter function is working. If our generator is dense then we jump around closer to the peak, we have smaller quantization error (deadweight losses).

The queues adapt, queue managers engage in relativity, on learning after the been there done that. Suddenly it appears we are closer to the peak of that middle curve, can more accurately move around because we learned a better commuter function.  Then, just as suddenly, we have price the multi-step sequence, we know the loop.  So we get two phases, inflationary then deflationary, the new productivity get depreciated and we adapt to our nominal density rank, our compact generator tends to revert to a natural human shape, determined by our innate throwing accuracy. Seriously, our brains are limited by the Hamiltonian of a baseball throw.

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