Re: Minsky, FIH, and stability

[FAC_BROSSER@xxxxxxxxxxxxxxxx]

Rejoinder to Paul Davidson:
     I completely agree that if reality is nonergodic (not
everyone agrees with that, e.g., most New Classicals) that
your version of Keynes's model will get the results you claim
(certainly there is Room at the Inn (which Inn?)).  My earlier
point was that you noted three things that the "Classicals
understood before Keynes" could cause unemployment.  Among
those was "faulty expectations."  Is that not your "special
case" then?  NK models get the same result with full rational
expectations but with reasonable nonlinearities.  I certainly
do think one of the reasonable approaches of government is to
overcome "coordination failure."  Is this not the very essence
of Keynes's desire for the "socialization of investment"?  I
believe this holds whatever the source of the coordination
failure is, nonlinearity or "faulty expectations."  Again in the
real world (weren't you the author of _Money in the Real World_?)
nonergodicity, nonlinearity, imperfect competition, information
asymmetries, and short-run wage and price stickiness all hold.
     I did not say I know nothing about the NIC's.  The more
important ones (ROK, ROC) seem to be following modified versions
of the Japanese model, but are still further behind and I did not
wish to excessively clutter up this network which I seem to have a
tendency to do.  I note that Chapter 18 in the previously mentioned
forthcoming book by me and my wife is on the two Korean economies.
     By the way, Feb. 25 is free and open , if that is a good time.
Barkley Rosser
James Madison University