me: >> In any event, please explain the "logic" behind supply-side >> macroeconomics, e.g., the belief in Say's Law.
Martin: > Which belief re "Say's Law" ? I shouldn't speak for David, but Classicals, including so-called "Austrians" and supply-siders (but not Monetarists), believe that in an economy with no government "interference" (beyond protecting property rights, enforcing contracts, and the like) deviations of actual levels of production from potential are miniscule, with excess supply in one sector being balanced by excess demand in another. (If the goverment or its central bank interferes, on the other hand, significant excess supply can exist for significant periods of time.) That's one statement of Say'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
