ACCELERATION-1
Lonergan seeks to avoid a crash by maintaining dynamic equilibrium such that "in successive periods of time the surplus stage of the (productive) process is accelerating more rapidly (|dQ"/Q"| > |dQ'/Q'|), and again later, less rapidly than in the basic stage." (Page 35)
(This alternating periods in the productive process require long-term education of all the decision-makers in the concept of accelerations.)
To adapt to this need in the productive process, the circulation of payments must be such that a balance between the two crossover accelerations (of c"O" and i'O' rates) is sustained. (This concept of "balance of acceleration of payments" is more general than the old static concept of "balance of payments.")
When there is a sustained imbalance, "one circuit is being drained of its resources by the other … then the firms on the losing side will contract and will eventually go out of business" (page 69).
Thus the relation between the two crossover accelerations is an indicator of equilibrium or disequilibrium. These two accelerations are variables dependent on the parameters in the diagram (and not independent variables as assumed in v0.14). When the four nodes of incomes and outlays (I", I’, O" and O’) become zero or negative in the simulation, there has been sustained imbalance. There is a crash.
This is how I interpret Lonergan’s baseball analogy in the situation described on page 212 of volume 21 The paragraph ends thus: "Further, the players at the bases may make up, by a greater efficiency in pitching and catching what balls they have, for any loss of balls they may suffer, up to the ultimate moment when they have no balls at all."
To avoid this ultimate moment, there is need to calculate the fraction v of the ratio w of the surplus income (I") to total income (I'+I") such that the decision to decrease v in Fig. 27-1 on page 150 is made at the right moment.
Thus there results a pure cycle that includes no negative acceleration that leads to recession, depression or crash.
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