Entity boundary issues

Multiple entity asset inflation

When you are drawing the boundaries of an entity you divide the nodes/accounts into input/outputs and internal. The assumption is that the inputs and outputs are actually separate from them. The idea is that the entity is relatively small compared to the rest of the economy and so the outputs do not affect the inputs.

This can be subverted if you connect the inputs to the outputs.

Severn water account is a good public version of this