Keynes. 1923. A Tract on Monetary Reform, reprinted 
Donald Moggridge, ed. The Collected Works of John 
Maynard Keynes, IV, (London: Macmillan, 1971). 
  65: "In the long run we are all dead.  Economists 
set themselves too easy, too useless a task if in 
tempestuous seasons they can only tell us that when 
the storm is long past the ocean is flat again." 

>
> On May 11, 2008, at 9:05 PM, Jim Devine wrote:
>
>> Sandwichman wrote:
>>> "this long run is a misleading guide to current affairs. In the long
>>> run we are all dead. Economists set for themselves too easy, too
>>> useless a task if in tempestuous seasons they can only tell us that
>>> when the storm is long past the ocean is flat again."
>>
>> Tom, do you know when/where he said this?
>>
> Tract on Monetary Reform (1928?)
>
>> it reminds me of a big problem with the orthodox (neoclassical) view
>> of the long run. It's assumed that the nature of the long run is
>> determined ahead of time (or at least the real, as opposed to
>> monetary, aspects are pre-determined). For lack of a better term, the
>> alternative or post-Keynesian view is that the nature of the long-run
>> result is determined partly by the process of getting there (path
>> dependence, hysteresis). Persistent high growth  of demand affects the
>> amount of supply (while for the orthodox, supply is given). Persistent
>> high demand undermines the role of structural unemployment, allowing
>> those with "inadequate" skills to get on-the-job training, etc. It
>> also stimulates labor productivity (Verdoorn's "law").
>>
>>
>>
>> -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
>> way and let people talk.) -- Karl, paraphrasing Dante.
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>
> Shane Mage
>
> "Thunderbolt steers all things...it consents and does not consent to be 
> called Zeus."
>
> Herakleitos of Ephesos
>
>
>
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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