Sunday, June 28, 2020

Target what the Walmart checkout manager targets

NGDP Targeting in the United Kingdom


The central banks wants the best estimate of items per consumer basket, what is the current economy of scale.   The banker is a Waslmart checkout manager changing items per basket so the queues do not clog. We call this a structured queue, a Huffman encoding tree.

In a trimmed tail environment that becomes the change in NGDP.  That number is really the number of price items removed from the long tail to make the price index centered. Centering is all your central banker wants, do nothing else


Once the whole theory is learned, three basic rules will apply. The central banker removes skew in the price index, the variance is matched between loans and deposits with interest swaps, as needed.  And the mean is set by entry and exits. I am pretty sure we will discover this after a few proofs and maybe a short book.



The currency banker is really about finding the best bnomial approximate to Gauss that the economy can handle. This is equivalent to having all parties operate on the iLog(i) all within an integer. The number of consumer items fitting that Gauss is items per basket and represents the number of coherent value chains the economy can support.

There is no time structure, that is an insurance problem, though I could solve it in a separate trading pit. This is a lot like computing the various orbitals in atomics, they should all have the -iLog(i) condition and their energy slots form something like a Huffman encoder.

The Theory of everything is real, it is all about counting stuff in a triadic (my new word).

No comments: