[From Kenny Kitzke (2004.01.24)]
I am excited by the idea of a Economy Test Bed model.
Am I correct that the proposed TB model is designed as a closed, negative feedback loop?
Is this just a model structure choice, or is it because the economy being modeled is clearly a closed loop?
My earliest recollection of PCTers discussing an economic model came from a presentation by Rick Marken at the Boston CSG meeting concerning an economic theory espoused by Bill Power’s father (TCP). One of the things I remember most about it was the concept of Leakage.
To this day, I find the idea of “leakage” and “closed loop” somewhat antithetical. Isn’t a closed loop one that has no leaks, and one with a leak an open loop? Or, is it like a tire with a nail that is supposed to be closed but slowly goes flat because it leaks?