Re: oscillator gain

On 22/10/2024 2:40 am, john larkin wrote:

On Sun, 20 Oct 2024 16:58:46 -0000 (UTC), Cursitor Doom
<cd999666@notformail.com> wrote:
 

On Sat, 19 Oct 2024 07:05:08 -0700, john larkin wrote:
>

If the loop gain of an oscillator is slightly over 1.00, oscillations
gain amplitude. Just under 1.00, they die out.
>
Economies are like that.
>
https://www.breitbart.com/europe/2024/10/19/record-633000-business-in-

britain-on-brink-of-collapse-report/

>
and politicians don't understand control theory.

>
Regulating an economy through monetary policy (interest rates - the usual
method) is far more problematic than most folks would ever imagine. It's
been likened to pulling a brick with an elastic band - and that's not a
bad analogy.

 Economists don't even agree on which direction to pull, but they do
mostly want to pull hard. It's the power thing. Just Powell's body
language slams a trillion dollars around nowadays.

Most economists do agree about the direction to pull. It's a quantitative science so - while there are differences about the size of the pull required - there's a measure of concensus about that too.
Theatrics do come into it, but mostly from the lunatic fringe.

It's not a good career path for an economist to say "leave it alone
and the market will work."

That approach leaves the economy cycling between boom and bust. Bang-bang control sort of works, but it doesn't work well.

I cite the morons who forced interest rates to zero for years and
didn't think what might happen.

That was a reaction to the Covid-19 epidemic,and avoided a recession. They were thinking very carefully about what might happen, even if you couldn't.

 

It's incredibly difficult to get the rate set right in order
to produce long-term stability and the optimally desired 'goldilocks
economy'. That's why there's normally a panel of economic advisers
involved. It's too complex a decision for just one man.

 So let 300 million people decide.

This is the same group who hasn't rejected Donald Trump decisively enough. It's hard to keep them well informed about complicated subject, and even harder when there's a lot of self-interested propaganda flying around. You have been totally suckered by climate change denial propaganda, and your opinions on economics are evidently equally susceptible to lying propaganda.
--
Bill Sloman, Sydney