Parameters in diagram
There are 17 parameters named in the diagram, of which 15 are as follows:
O’, O", I’, I", S’, S", D’, D", E’, E", c’, c", i’, i", and RF
The coefficients of savings s’ and s" can be computed from the coefficients of consumption and investment, for each trio adds up to unity in both the surplus stage and the basic stage.
On page 200 of MD:ECA, editor Patrick Byrne observes that these two coefficients "are not completely general – and may well be contrafactual." He then proposes an alteration of the symbols and distinguishes these coefficients when associated with I’ and I" on the one hand, and on the other hand, when associated with O’ and O".
(Independently, Sarmenta suspected some ambiguity in these coefficients while playing with his Java simulation (v.012). He noticed that in both the surplus and basic stage, each trio did not always add up to unity.)
Byrnes’ proposal is an important heuristic clue into "what is going forward" in Lonergan’s intentionality from 1944 to 1982. There is forward movement toward "the undetermined function to be determined" (as phrased by editor Lawrence on page lv of MD:ECA). To determine the conditions for dynamic equilibrium, any contrafactual consequences can be avoided only by empirical equations. Hence the need for statistical analysis.
Despite its shortcomings, the attempt at a Java simulation of Lonergan's diagram suggests the value of a hands-on computer game as an exercise for deriving insights into monetary circulation.
Players wll be challenged to quantify their inputs with such accuracy as to maintain dynamic equilibrium and avoid errors that lead to a crash.
The insights they derive can lead progressively to fine-tuning the forward movement toward "the undetermined function to be determined."