Re: Why economists do not care about high rates of unemployment w

[FAC_BROSSER@xxxxxxxxxxxxxxxx]

Paul,
     Forgetting chaos for a minute, the nonlinear multiple
equilibria (all non-chaotic, but could be, if you prefer)
literature presents lots of reasons why l-f equilibria might
emerge that are sub-optimal both in terms of employment and
neoclassical efficiency.  If government can improve this by
intervening why not?
     BTW, just because an equilibrium is chaotic does not mean
it is generally unstable.  It will not be a stationary state,
but will tend to oscillate within certain bounds, Leijonhufvud
"corridor stability" or "resilience" to use the terminology of
the ecological theorist, C.S. Holling.
Barkley Rosser
JMU