A Tract on Monetary Reform, 1924 -- a book which Friedman praised strongly!
Trevor Evans. -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Jim Devine Sent: 12 May 2008 03:06 To: Progressive Economics Subject: Re: [Pen-l] Long Run [was: Re: job creation - beyond slave auction 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? 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. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
