Conservation principles

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

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center  (615) 974-4221
I STRONGLY DISAGREE WITH HERB'S RESPONSES to me and others on the long and the
short and the so far poorly defined supply side constraints, as well as whether
 Keynes's (not bastard Keynesian) thoery has any guidance on this matter.
But i have to depart before a proper response can be given -- and next
the net will be filled with discussions of Jamie's paper.So I will   respond
after that -- but one query -- if rent seeking is a "cautionary (oops I almost
said Canterbury) tale, why has there never been any scandal regarding
Federal Reserve bureaucrats who could make a fortune by playing their
inside information on open market operations?  Perhaps there are some
bureaucrats who have a sense of civic responsibility that tempers there
own self-interest. (Or the question of external vs, internal incentives
as G. Davidson and I discusss in   ECONOMICS FOR A CIVILIZED SOCIETY (1988).

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