Time lag
A “time lag” in general is a measure of the time between two moments (1) investment, and (2) when the investment begins to produce the anticipated goods.
The time lag belongs primarily to the production process but it affects the circulation of payments insofar as human adaptation to the technical constraints of the circulation process requires consensus among the five groups of participants in the economy: financiers, producers, traders, laborers and consumers, or in other words, the entire population.
In a democracy, such consensus emerges from a political process. In cosmopolis , it emerges from a geopolitical process. (This must be the reason why Lonergan first entitled his study "For a New Political Economy" and volume 21 of his Collected Works treats this topic.)
According to J. Stiglitz (The New Republic, 4/7/00), it takes from 12 to 18 months after the U.S. Fed changes interest rates for the change to fully affect the U.S. economy. To affect the macroeconomy, a longer time lag would be needed. Is this the time lag mentioned on page 37? Can some computerized technique, for example, a Java simulation, aid decision-making, speed up human adaptation and shorten the time lag?
HOME | Preferential
option | Praxis | Macroeconomic
Dynamics | Hinge |
| Java Simulation |
Dynamic Equilibrium |
Rules | Phase 3 | Future
version | |
Acceleration-1 |
| Accelerations-2 |
Parameters | Time lag |
Matrices | Cosmopolis
| Parallel processing | Community-centered
| Indeterminacy |