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If by fierce you mean Mr. Limpet, then I agree it's a valid question.
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Posted by: jerry | April 30, 2008 at 01:18 PM
All I see is Mr Magoo.
On a good day
Pausing, and not trying to think about it but letting the impression form,
he's a serious toady
Posted by: christofay | April 30, 2008 at 04:02 PM
Like a final exam.
Why does unemployment rise with increased inflation**2? Why is it power law.
Inflation, rate of change of money quantity. This is the financial industry's best real time estimate of inventory flows, or it is the best estimate of the global economic production function minus the financial industry's best estimate of its own production functions.
The financial industry is measuring itself to determine the production function of those who use its money.
All production functions estimate themselves. They estimate themselves by engaging in inventory updates. The system parameters a production function uses is related to its rank, the lower the rank, the smaller the inventory move in time and space.
Unemployment takes off when the economy swings as N**2 in its demand for inventory updates at the peak of the cycle.
The real question is why does the economy swing as N**2 in its demand for inventory updates, where N is the rank of measurement. Actually, it can go as NlogN, but it is integer bound, the rank of inventory management is integer bound, and must attempt a move up or down in rank. When inflation takes off the demand is for an economic wide rank change, so a rapid, nearly vertical, rise in unemployment should result. The depression was a failed jump in rank, we could not supply the next increment, NlogN, that the roaring twenties demanded.
A rank change from one resolution to the next higher up increase the outlook. We always have this urge to unite the globe in order to increase outlook.
Outlook is precision, a change in rank is like adding a precision bit, ups outlook by NlogN.
Maximum rank is the long pole. We can operate within a rank, linear, for a while, but we eventually get productivity increases that push us up one rank.
Posted by: Matt | April 30, 2008 at 04:10 PM
Now, Volcker, fierce inflation fighter, looks like Papa Bear of the Bernstein Bears.
Posted by: christofay | April 30, 2008 at 04:12 PM
It's to show the proles who's really in charge.
Posted by: Neil B. | April 30, 2008 at 05:57 PM