Re: Why is a dollar today worth more than a dollar tomorrow?

2003-12-06 Thread Fred Foldvary
--- Marko Paunovic [EMAIL PROTECTED] wrote: OK. Then, as long as the expected profit from building a factory is higher than zero, I would not lend the money at zero interest rate. If at a zero rate of interest, the quantity of savings exceeds the quantity of borrowings, savers would earn zero

Re: Real wages constant since 1964?!

2003-12-06 Thread Fred Foldvary
If you measure wages in desk calculators instead of dollars, I'm sure they've gone up substantially! ;-) --Robert And if you measure wages in units of a real-estate price index, they have gone down substantially! Fred Foldvary = [EMAIL PROTECTED]

Re: Real wages constant since 1964?!

2003-12-06 Thread Fred Foldvary
--- john hull [EMAIL PROTECTED] wrote: Why are we better off today? (Better products two wage households would be a start, I guess.) Better products, yes, but not necessarily two-wage households. If the price of housing goes up substantially, a spouse may be induced to work for wages, but

Re: Why is a dollar today worth more than a dollar tomorrow?

2003-12-06 Thread John Morrow
I recall a Japanese econ grad student telling me that in fact real interest rates were negative for some span and people were STILL saving in the late nineties in Japan. He also blamed several bubbles at the time (notably, real estate in Japan) on this. Interesting if true... (Anyone know the