RULES FOR SLIDER SETTINGS

The first 15 sliders (I", I', O", O', RF, E", E', S", S', D", D', c", c', i", i') are to be set in conformity with a specific situation, whether real or imagined.

The real situation can only be known through statistical analysis of the set of values in macroeconomic databases. This would presuppose total transparency of updated accounting in banks, firms, households, etc., such that the changing aggregates of each of these 15 values are authentic. It will certainly presuppose rapid access to such accounting as can be made, e.g. with techniques of parallel processing.

However, a macroeconomic situation can be imagined, using dummy values for each of the 15 sliders, as an exercise that can be both pedagogic and heuristic. Its pedagogic aim is to gain insight into Lonergan's meanings in formulating the interactions between the circulating flows. Its heuristic aim seeks further insights towards fine-tuning these interactions.

In either the real or imagined situation, the settings of the 15 sliders for each interval can yield w, the ratio of the surplus income (I") to total income (I'+I"). The changing values of w can be plotted on a graph with time as the abscissa, subdivided into "intervals" that constitute the various "phases" of the productive process.

 

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