I am from the physical science sector of the world but with a very long duration interest in monetary systems and economics. As I read articles in those sectors here on WP, particularly, “New Economic Perspectives”, comments and contradictory views of different elements of the system, I see the system crying out for a through, professional system analysis which would bring clarity to the issues of system elements, driving factors in those elements and what is needed to fix them. It would also solve the issue of system stability once and for all, for all to both see and understand what causes instability in the economic system. And believe me, stability does not cause instability but an element  with a long time constant can appear to wipe out a long period of stability to give credence to the statement used many times by the eminent W. Randall Wray. I would speculate that element would appear as an overriding positive feedback of very low bandwidth or very long time constant and perhaps very low gain. The view that stability enables instability would indicate an element in the system with these characteristics. 

I believe a system analysis would not be difficult to perform with an economist who is willing to see the approach a system controls engineer would define a system vs how the economists defines elements in the system  but the two professional working together could describe the system together, I believe, and shed a hugh light and credibility on the results. I am sure too that the economists would be amazed by the system elements the control engineer would see in the system and the simplification of the system description. vs the economists view of elements. 

The system control engineer has the huge advantage of identifying an element and being able to use it in a formal analysis by means of just three constants: bandwidth, gain and noise. Bandwidth is the reciprocal of time constant and economists understand those values in elements. Gain is the ratio of output to input which both professions have equal understanding. The ability of the system engineer to cope with a noise function will bring another view and a strong method of eliminating many misunderstandings  in economics. Economic elements are loaded with noise but the important point is knowing how to distinguish signal from noise and how to filter the noise.

Without further ado I recommend one of the economists in one of the eminent universities have a lunch with a colleague from the controls systems department and get a project started. And I am sure they could find a grant to fund their work.

 

 

 

 

 

 

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