Re: Uncertainty and Liquidity Preference

["John M. Legge" <jlegge@xxxxxxxxxx>]

Paul has provided a comprehensive answer.

This is just self defence:
When I wrote that today is the best predictor of tomorrow that is my exact meaning: today is Tuesday in Melbourne and tomorrow the weather and the Australian economy won't be very different.  Neither I nor anyone else knows exactly how different tomorrow will be, but experience teaches that, whatever direction the changes take, they are likely to be small ones.

It is when all the tomorrows are added up to reach the long run that complete, fundamental uncertainty reigns.

JML


----- Original Message (part) -----
From: Ted Winslow <winslow@xxxxxxxx>
To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
Sent: Tuesday, 13 July 1999 8:18
Subject: Re: Uncertainty and Liquidity Preference


> Chip, Paul, John, David:
>
>
> To claim that "today is still the best predictor of tomorrow's conditions"
> where tomorrow is the long run is, it seems to me, to deny the existence of
> fundamental uncertainty in the above sense.
>