Re: Equilibrium, rest and nonergodic systems.

[BMOORE@xxxxxxxxxxxxxxxxxx]

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> From: uctpa98 <uctpa98@xxxxxxxxx>
> Subject: Re: Equilibrium, rest and nonergodic systems.
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> Dear Basil, I do not argue that  for the Kaldor-Trevithick argument to
> hold, all units must have ODs. i argue that while money cirulates amongst those
> w/o ODs or those with them who do not yet wnat to repay them, prices of goods
> or securities may rise.
> Vicky
> Victoria Chick uctpa98@xxxxxxxxx

Dear Vicky

    I thought I remembered in one of your papers you did argue that
not all economic units had overdrafts, so the K-T argument didn't go
through?  Does my memory fail, or have you revised this?

    As to portfolio effects, if the CB administers short rates,
and long rates are determined by expectations, I don't think there
will be asset price effects unless the new credit alters expectations
of the future.

    As to goods prices, as you know I argue that in economies with
fix price markets, a change in demand will change quantities, and
not prices.

Basil