Re: Sweden -- A few reactions on the N.Y. Times article,lbo-talk@panix.com

["William S. Lear" <rael@xxxxxxxxxxxx>]

On Tue, August 11, 1998 at 15:06:40 (-0400) Rosser Jr, John Barkley writes:
>...
>     Well, I have already argued that a chaos/complexity
>view of financial markets implies that they are inherently
>and endogenously unstable.  Now, it may be that "we" who
>have read Marx, Keynes, Galbraith, Minksy, Kindleberger,
>Shiller, and other assorted types (and even Henwood's _Wall
>Street_), may "know" this.  But there are a lot of
>economists and financial types who don't, who claim that
>the market is efficient, that it is endogenously stable,
>and that the only reason we see volatility is due to
>exogenous "noise" ...

I might add that this argument can also be applied to the whole school
of rational expectations, which chaos theory makes an absolute mess
of...


Bill