A working paper exploring the idea that information equilibrium is a general principle for understanding economics. [Here] is an overview.
May I ask why you are using a logarithmic scale?
The main reason is that the short rate would just look like zero, smashed against the axis. On a log scale, you can see the correlation with 1/MB better that I discuss here:http://informationtransfereconomics.blogspot.com/2015/08/explicit-implicit-models.htmlAnd since it is a model of both interest rates:log(r) = c log(NGDP/M) - bwithc = 3.02b = 11.7and M = MB for short rates and M = M0 (MB minus reserves) for long rates, I like to show both on the same graph.
But it is easy enough to show both ... I will update.
Ah. I see.
Comments are welcome. Please see the Moderation and comment policy.Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.