In the Inflated TMC model, the TMC is normalized to the target inflation, as an opposite to the constant.
1. DI per cent is the target TMC inflation per market day.
2. TMCi is TMC at the end of the i-th day.
3. TMCT0 is TMC as it were before the first market day of the year started, as in Constant TMC model.
TMCTi = TMCT(i-1)*(1 + DI/100) - recursive definition of the Target TMC in the i-th market day.
4. In the Inflated TMC model, TMC at the start of each market day is set to the TMCi.
All the prices are normalized to the value, multiplied by the factor
k = TMCTi/TMC(i-1)
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0.02% <= DI <= 0.05% looks like the reasonable range to set the target daily inflation rate for TMC, in the current circumstances.
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The Inflated TMC model is a stable model, lacking the major failures of the Constant TMC model.