target value. In other words, the purpose of the derivative action is to prevent the controlled economy from being excessively underdamped. The of k and kn, as well as of the 'shaping' operators tf>(z), : 0.571 (as in Table XIV.1), but by 1.03 per cent if k Equally important the effect that the kterms have on the loop gain at high frequencies (Le. in the region of w = At these frequencies the loop gain should be low as possible in order to minimise futile instrument move- ments, which have chance of affecting the outputs beneficially.

doi:10.4324/9780203814628-140

Chapter

target value. In other words, the purpose of the derivative action is to prevent the controlled economy from being excessively underdamped. The of k and kn, as well as of the 'shaping' operators tf>(z),

Chapter

ABSTRACT

The behaviour of Money CDP is, if anything, rather improved (Figure XIV.12). Although it takes two quarters instead of one to halve the deviation from target, the smoother trajectory is much more satisfactory, since the instruments are no longer required to oscillate for ten years. The peak induced deviation of the balance of payments is smaller than in Figure XIV.1(a), but a small deviation remains uncorrected for over forty quarters.