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

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

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center  (615) 974-4221
Dear Steve: Alan Blinder is an old friend and next door neighbor from the days
I lived in Princeton, N.J. Its all talk -- until they ralize that the Arrow-Deb
reu microfoundation conclusion are inconsistent with nonergodic systems, these
will be more ad hoc presentations. There are an infinite number of
ad hoc constraints on classical systems that can be derived if we work
backwards from macro- to microeconomics.  I know I've seen enumerable
ones when I discuss these matters with people like Blinder, Nordhaus, Mankiw,
Stiglitz, etc.  --- and even Clower. Bob and I had a long discussion about
the work backwards hypothesis (that's what his notional demand analysis of1964
is all about) in Cambridge England in 1970. Bob said the importantthing is that
 the neoclassicals would get the right "conclusions" even if it was by the
use of ad-hoccry. I claimed then, and still claim, you can not make good

Have a good day!____Paul Davidson
))))_ fax # (615) 974-1686