Re: Minsky, FIH, and stability

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center     974-4221
Dear Barkley: Again you miss my point. a general thoery means that even if nonl
inearities, imperfect competition, and wage and price stickiness did not hold
in the real world --- as long as nonergodicity is possible for SOME economic
variables, unemployment can be explained by the use of money and the needfor
liquidity. (The ergodic axiom requires that all economic variables be governed
by ergodic processes. Keynes never insisted that all economic decisions are
subject to uncertainty -- only those involving investment, the accumlation of
wealth, finance, liquidity, etc. Other, can we call them routine economic decis
ions, can be made under the assumption that the system for these variables are
ergodic. Otherwise, how could they be routine? Thus Keynes's theory is more gen
eral because it permits both ergodic and nonergodic subsystems. Isn't that
even "more realistic"? Paul
I'll keep FEb 25 in mind.

Have a good day!